We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cigna Q4 Earnings Top on Higher Enrollment, 2018 View Issued
Read MoreHide Full Article
Cigna Corp. (CI - Free Report) 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
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%.
Other health insurers UnitedHealth Group Inc. (UNH - Free Report) , Anthem Inc. and Aetna Inc. beat estimates in the fourth quarter by 3.6%, 3.2% and 5.93%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Cigna Q4 Earnings Top on Higher Enrollment, 2018 View Issued
Cigna Corp. (CI - Free Report) 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 - Free Report) , Anthem Inc. and Aetna Inc. beat estimates in the fourth quarter by 3.6%, 3.2% and 5.93%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>