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Cigna (CI) Beats Q2 Earnings on Higher Revenues, Guides Up - Tale of the Tape

Zacks Equity Research
Updated

Cigna Corp. (CI) is the fifth largest managed care plan with a strong global supplemental business, Pharmacy Benefit Management (PBM) Services Agreement.

Its organizational efficiency plans as well as expansion of Seniors and Medicare business position it well for long run.

The company has a large international presence, which has kept it safe from reform.

Last week, the company entered into an agreement to merge with Anthem Inc. The merger would help Cigna (currently holding fourth rank) to leapfrog to the number one rank, in terms of membership in the U.S. health insurance industry, leaving behind UnitedHealth Group Inc. (UNH), which currently holds the top position.

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Cigna does have a decent history when it comes to earnings as the stock has beaten estimates in all the last four reported quarters making for an average surprise of 5.51%.

Currently, Cigna has a Zacks Rank #3 (Hold), but that could definitely change following Cigna earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings Beat : Cigna beat on earnings. Our consensus called for EPS of $2.38, and the company reported EPS of $2.55. EPS grew 23% year over year.

Revenue : Revenues of $9.5 billion surpassed the Zacks Consensus Estimate of $9.3 billion. Revenues also grew 9% year over year.

Key Stats to Note:

Premiums of $7.4 billion increased 9.3% year over year. All the segments of the company – Global Health Care, Global Supplemental Benefits and Group Disability and Life – registered premium growth.

Total Medical Customers totaled 14.8 million as on Jun 30, 2015, up 3.7% year over year.

Driven by strong results, Cigna pulled up its 2015 earnings guidance. It now expects income from operations in the range of$ 2.16 billion to $2.24 billion compared to the previous estimate of $ $2.12 billion to $2.21 billion. Earning per share is expected in the range of $8.30 to $8.60 up from the previous range of $8.15 to $8.50 per share. It expects 8%-10% revenue increase in 2015. The company expects global medical customer growth of 2% to 4%.

Check back later for our full write up on this Cigna earnings report later!

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CIGNA CORP (CI): Free Stock Analysis Report
 
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