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Cigna (CI) to Announce Q2 Earnings: Here's What to Expect

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Cigna Corporation (CI - Free Report) is set to report its second-quarter 2022 results on Aug 4, before the opening bell.

In the last reported quarter, the health service company’s adjusted earnings per share of $6.01 beat the Zacks Consensus Estimate by 17.2%, primarily on strong contributions from its businesses. Growth in the medical customer base contributed to the upside. However, the positives were partly offset by elevated benefits and expenses.

Let’s see how things have shaped up prior to the second-quarter 2022 earnings announcement.

Trend in Estimate Revision

The Zacks Consensus Estimate for second-quarter earnings per share of $5.44 has witnessed no movement in the past week. This estimate is indicative of a 3.8% improvement from the year-ago quarter’s reported earnings of $5.24 per share. The Zacks Consensus Estimate for revenues is pegged at $44.2 billion, suggesting a rise of 2.6% from the year-ago quarter.

Cigna’s earnings beat estimates in each of the trailing four quarters, the average being 8.6%. This is depicted in the graph below.

Cigna Corporation Price and EPS Surprise

Cigna Corporation Price and EPS Surprise

Cigna Corporation price-eps-surprise | Cigna Corporation Quote

Factors to Note

Strong performances across CI’s Evernorth and Cigna Healthcare businesses are likely to contribute to its to-be-reported results. The Evernorth unit might have gained from a growing customer base and higher pharmacy script volumes in the to-be-reported quarter.

The Zacks Consensus Estimate for pharmacy revenues implies a 5% rise from the year-ago quarter’s actuals, which might have aided Evernorth’s second-quarter performance. The consensus mark for Evernorth’s revenues is pegged at $33,863 million for the second quarter, indicating an increase from $32,592 million a year ago.

The Zacks Consensus Estimate for total medical customers in U.S. commercial business signals a 7.3% increase from the year-ago period. This might have helped the company to increase its profits year over year. Also, the consensus mark for fees and other revenues indicates a rise of 18.5% from a year ago.

However, Cigna’s investment income is expected to have taken a hit in the second quarter. The consensus mark for net investment income is pegged at $294 million, suggesting a decrease from $310 million in the prior-year quarter. This might have partially offset the positives in the quarter under review. Also, the Zacks Consensus Estimate for premiums signals a 4.1% year-over-year decline in the second quarter, making an earnings beat uncertain.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Cigna this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: The company’s Earnings ESP is 0.00%. The Most Accurate Estimate is currently pegged at $5.44 per share, in line with the Zacks Consensus Estimate.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Cigna currently carries a Zacks Rank #3.

Stocks to Consider

While an earnings beat looks uncertain for Cigna, here are some companies in the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

Alcon Inc. (ALC - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Alcon’s bottom line for the to-be-reported quarter is pegged at 55 cents per share, which has witnessed one upward estimate revision in the past 30 days compared to none in the opposite direction. ALC beat earnings estimates in each of the trailing four quarters, with an average of 21.4%.

Hims & Hers Health, Inc. (HIMS - Free Report) has an Earnings ESP of +1.96% and currently has a Zacks Rank #3.

The Zacks Consensus Estimate for Hims & Hers Health’s top line for the to-be-reported quarter is pegged at $101.9 million, implying a 67.8% improvement from the year-ago figure. HIMS beat earnings estimates in three of the trailing four quarters and missed once, delivering an average surprise of 21.7%.

Akero Therapeutics, Inc. (AKRO - Free Report) has an Earnings ESP of +2.07% and is a Zacks #3 Ranked player.

The Zacks Consensus Estimate for Akero Therapeutics’ bottom line for the to-be-reported quarter has improved 1.2% in the past 30 days. The earnings estimate has witnessed one upward revision during this time compared to none in the opposite direction. AKRO beat earnings estimates twice in the trailing four quarters and missed on the other two occasions, with an average surprise of 1.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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