Shutterstock photo
Markets

CIGNA’s Q2 Profit Beats View, Forecast Raised (CI)

Health benefits provider CIGNA Corporation ( CI

) on Thursday said its second quarter profit fell 32% from last year, hurt by one-time items, but adjusted results easily beat expectations and the company boosted its full-year outlook.

The Philadelphia-based company reported second quarter net income of $294 million, or $1.06 per share, compared with $435 million, or $1.58 per share, in the year-ago period. Excluding one-time items, adjusted profit was $1.38 per share.

Revenue surged 19% from last year, to $5.35 billion.

On average, Wall Street analysts expected a much smaller profit of just 37 cents per share, on lower revenue of $5.25 billion.

Looking ahead, the company raised its full-year earnings outlook to a range of $4.10 to $4.40 per share, excluding items. That compares to a prior forecast of $3.75 to $4.15 per share for the year.

CIGNA shares rose $1.02, or +3.2%, in premarket trading Thursday.

The Bottom Line

We have avoided shares of CIGNA since our early June 2008 coverage began, when the stock was trading at $41.55. The company has a .12% dividend yield, based on last night's closing stock price of $32.15. The stock has technical support in the $28-$30 price area. If the shares can continue their recent momentum, we see overhead resistance around the $36 price level. We would remain on the sidelines for now.

CIGNA Corporation ( CI ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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

Created by Dividend.com


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

In This Story

CI

Other Topics

Stocks

Latest Markets Videos