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Cigna Q4 Earnings Top on Higher Enrollment, 2018 View Issued

Cigna Corp.CI came up with adjusted earnings per share of $1.94 for the fourth quarter, beating the Zacks Consensus Estimate of $1.87. Earnings also grew 3.7% year over year.

Better-than-expected earnings were primarily driven by strong contribution from its Global Supplemental Benefits segment.

Other Details

Cigna posted revenues of $10.53 billion, which surpassed the Zacks Consensus Estimate of $10.29 billion. Revenues grew 5.9% year over year.

Premiums were up 7% year over year to $8.2 billion, while fees increased 5% to $1.19 billion.

Total benefits and expenses of $9.78 billion increased 5% year over year, led by higher global health care medical cost.

The company's medical enrollment grew to 15.91 million from 15.19 million in the year-ago quarter, driven by growth in its Commercial Mrket segment.

Cigna Corporation Price, Consensus and EPS Surprise

Cigna Corporation Price, Consensus and EPS Surprise | Cigna Corporation Quote

Strong Segment Performance

Global Health Care: Operating revenues of $8.3 billion were up 6% year over year on a 6.8% year-over-year increase in premiums and fees to $7.3 billion. The improvement was driven by customer growth in the Commercial Market segment. However, the upside was partially offset by reductions in Government customers.

Adjusted operating earnings were $397 million, down 2% year over year due to higher medical costs.

Global Supplemental Benefits: Operating revenues of $1.02 billion were up 17% year over year on a 17.2% increase in premiums and fees, reflecting continued business growth.

Adjusted operating income increased 28.5% year over year to $81 million, reflecting business growth and favorable claims experience, particularly in South Korea.

Global Disability and Life: Operating revenues of $1.1 billion were down 1% year over year due to a 1.4% decrease in premiums and fees.

Adjusted operating income declined 11.6% year over year to $61 million.

Financial Position

Cigna's cash and marketable investments were of $1.2 billion as of Dec 31, 2017, down from $2.8 billion as of Dec 31, 2016.

Long-term debt was $5.2 billion as of Dec 31, 2017, reflecting a 9.3% increase year over year.

2018 Guidance

The company expects to earn in the range of $12.40 and $12.90, on a per share basis. Total revenue growth is projected in the range of 7% to 8% and medical customers are projected to grow by 0.3 million to 0.5 million lives.

The consolidated adjusted tax rate should fall in the range of 22.5% to 23.5%.

Zacks Rank and Other Releases

Cigna carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Other health insurers UnitedHealth Group Inc. UNH , Anthem Inc. ANTM and Aetna Inc. AET beat estimates in the fourth quarter by 3.6%, 3.2% and 5.93%, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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