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Will Cigna (CI) Q3 Earnings Gain on Revenue Growth?

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Cigna Corp.’s (CI - Free Report) third-quarter results scheduled on Nov 1, 2018, should show strong performance across each of its priority growth platforms — commercial employer, U.S. seniors, Global Supplemental Benefits and Group Disability & Life.

Moreover, Cigna’s results should reflect growth in medical customers and specialty relationships, continued effective medical cost management, operating expense discipline and accretion from a low tax rate.

Cigna’s Global Health Care revenues should grow on the back of Commercial customer growth, and expansion of specialty relationships as well as premium growth, reflecting the return of the health insurance tax and underlying cost trends.  Global medical customers in the segment should have grown in its Select, Middle Market and Individual lines of business.

Operating expense at this segment should be somewhat higher due to the ongoing investments in growth and innovation.

Its Group Disability and Life segment should gain from favorable Life results, solid performance in Disability and a lower tax rate.

The company in the last quarter indicated that it might not conduct additional share repurchases prior to the closing of the Express Scripts transaction, which is slated for the end of 2018. Thus the company’s bottom line will be bereft of any gains that might have accrued from share buyback.

Earnings Surprise History

The company boasts an attractive earnings surprise history, having surpassed estimates in each of the trailing four quarters, with an average positive surprise of 15.61%. This is depicted in the chart below:

Cigna Corporation Price and EPS Surprise

Why a Positive Surprise Likely?
 
Our proven model indicates that chances of Cigna beating the Zacks Consensus Estimate are high as it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better. You can uncover the best stocks to buy or sell before they’re reported with our  Earnings ESP Filter.
 
Zacks ESP: The Earnings ESP for Cigna is +0.37%.
 
Zacks Rank: UnitedHealth currently has a Zacks Rank #3 (Hold), which increases the predictive power of ESP.

Other Stocks to Consider

Here are some companies that you may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:  

Anthem, Inc. is slated to release third-quarter earnings figures on Oct 31. This stock has an Earnings ESP of +1.69% and a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

AMAG Pharmaceuticals, Inc.   has an Earnings ESP of +7.64%. This Zacks Rank #3 ( company is set to report third-quarter earnings on Nov1.

Kala Pharmaceuticals, Inc. (KALA - Free Report) is set to report third-quarter 2018 earnings performance on Nov 6. The stock has an Earnings ESP of +1.22% and a Zacks Rank of 2.
 

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