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Can Cigna's (CI) Q3 Earnings Beat on Evernorth Performance?
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Cigna Corporation (CI - Free Report) is set to sustain its earnings beat streak for third-quarter 2022, the results of which are scheduled to be released on Nov 3, before the opening bell.
In the last reported quarter, the health service company’s adjusted earnings per share of $6.22 beat the Zacks Consensus Estimate by 14.3% primarily on solid contributions from its businesses and strong membership growth. However, the upside was partly offset by higher benefits and expenses.
The Zacks Consensus Estimate for third-quarter earnings per share of $5.70 has witnessed no movement in the past week. The estimate is indicative of a 0.5% decline from the year-ago quarter’s reported earnings of $5.73 per share. Our estimate for earnings per share is pegged at $5.68, indicating a 0.9% year-over-year decline.
The Zacks Consensus Estimate and our estimate for revenues are both pegged at $44.9 billion, suggesting a rise of 1.3% from the year-ago quarter’s reported figure.
Cigna’s earnings beat estimates in each of the trailing four quarters, the average being 10.7%. This is depicted in the graph below.
Our proven model conclusively predicts an earnings beat for Cigna this time around as well. 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, which is precisely the case here.
Earnings ESP: Cigna has anEarnings ESP of +0.07%. This is because the Most Accurate Estimate is currently pegged higher than the Zacks Consensus Estimate of $5.70 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:Cigna currently has a Zacks Rank #2.
Factors Driving Q3 Performance
Strong performances across CI’s Evernorth and Cigna Healthcare businesses are likely to contribute to its to-be-reported quarter’s results. The Evernorth unit is expected to 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 3.4% rise from the year-ago quarter’s actuals. The metric is expected to have aided Evernorth’s September-end quarter’s performance. The consensus mark for Evernorth’s revenues is pegged at $34,958 million.
The Zacks Consensus Estimate for pre-tax adjusted income from Evernorth is pegged at $1,658 million for the third quarter, whereas our estimate is pegged at $1,660 million. The metric is expected to have helped the company to increase its profits year over year. Our estimate for pre-tax income in Cigna Healthcare is pegged at $818 million.
Our estimate for pre-tax income from other operations is pegged at $230.2 million. We expect the medical care ratio for the third quarter to be at 80.6%, suggesting a year-over-year decline of 380 basis points.
The Zacks Consensus Estimate for total medical customers signals a 5.9% increase from the year-ago period’s reported number. The consensus mark for fees and other revenues indicates 10.4% year-over-year growth, while our estimate suggests a 3.6% increase.
However, Cigna’s net investment income is expected to have taken a hit in the third quarter. The consensus mark for net investment income is pegged at $308 million, suggesting a decrease from the $468 million reported in the prior-year quarter. Our estimate for the metric is pegged at $363.5 million. The decline in the metric is expected to have partially offset the positives in the quarter under review. Also, the Zacks Consensus Estimate for premiums signals a 4% year-over-year decline for the third quarter, whereas our estimate suggests a 3.2% fall from the year-ago period’s reported figure.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader medical space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
NuVasive, Inc. currently has an Earnings ESP of +15.55% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for NuVasive’s earnings per share for the to-be-reported quarter indicates a 65.6% year-over-year increase. NUVA has witnessed one upward estimate revision in the past 30 days against none in the opposite direction.
Jazz Pharmaceuticals plc (JAZZ - Free Report) has an Earnings ESP of +2.12% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Jazz Pharmaceuticals’ bottom line for the to-be-reported quarter indicates a 12.4% improvement from the year-ago period’s actuals. JAZZ beat on earnings in three of the last four quarters and missed on the same once, the average surprise being 10.9%.
Masimo Corporation (MASI - Free Report) currently has an Earnings ESP of +4.35% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Masimo’s bottom line for the to-be-reported quarter has been unchanged over the past week. MASI beat earnings estimates in each of the last four quarters, the average surprise being 7%.
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Can Cigna's (CI) Q3 Earnings Beat on Evernorth Performance?
Cigna Corporation (CI - Free Report) is set to sustain its earnings beat streak for third-quarter 2022, the results of which are scheduled to be released on Nov 3, before the opening bell.
In the last reported quarter, the health service company’s adjusted earnings per share of $6.22 beat the Zacks Consensus Estimate by 14.3% primarily on solid contributions from its businesses and strong membership growth. However, the upside was partly offset by higher benefits and expenses.
Let’s see how things have shaped up prior to the third-quarter earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings per share of $5.70 has witnessed no movement in the past week. The estimate is indicative of a 0.5% decline from the year-ago quarter’s reported earnings of $5.73 per share. Our estimate for earnings per share is pegged at $5.68, indicating a 0.9% year-over-year decline.
The Zacks Consensus Estimate and our estimate for revenues are both pegged at $44.9 billion, suggesting a rise of 1.3% from the year-ago quarter’s reported figure.
Cigna’s earnings beat estimates in each of the trailing four quarters, the average being 10.7%. This is depicted in the graph below.
Cigna Corporation Price and EPS Surprise
Cigna Corporation price-eps-surprise | Cigna Corporation Quote
What the Quantitative Model Suggests
Our proven model conclusively predicts an earnings beat for Cigna this time around as well. 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, which is precisely the case here.
Earnings ESP: Cigna has anEarnings ESP of +0.07%. This is because the Most Accurate Estimate is currently pegged higher than the Zacks Consensus Estimate of $5.70 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:Cigna currently has a Zacks Rank #2.
Factors Driving Q3 Performance
Strong performances across CI’s Evernorth and Cigna Healthcare businesses are likely to contribute to its to-be-reported quarter’s results. The Evernorth unit is expected to 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 3.4% rise from the year-ago quarter’s actuals. The metric is expected to have aided Evernorth’s September-end quarter’s performance. The consensus mark for Evernorth’s revenues is pegged at $34,958 million.
The Zacks Consensus Estimate for pre-tax adjusted income from Evernorth is pegged at $1,658 million for the third quarter, whereas our estimate is pegged at $1,660 million. The metric is expected to have helped the company to increase its profits year over year. Our estimate for pre-tax income in Cigna Healthcare is pegged at $818 million.
Our estimate for pre-tax income from other operations is pegged at $230.2 million. We expect the medical care ratio for the third quarter to be at 80.6%, suggesting a year-over-year decline of 380 basis points.
The Zacks Consensus Estimate for total medical customers signals a 5.9% increase from the year-ago period’s reported number. The consensus mark for fees and other revenues indicates 10.4% year-over-year growth, while our estimate suggests a 3.6% increase.
However, Cigna’s net investment income is expected to have taken a hit in the third quarter. The consensus mark for net investment income is pegged at $308 million, suggesting a decrease from the $468 million reported in the prior-year quarter. Our estimate for the metric is pegged at $363.5 million. The decline in the metric is expected to have partially offset the positives in the quarter under review. Also, the Zacks Consensus Estimate for premiums signals a 4% year-over-year decline for the third quarter, whereas our estimate suggests a 3.2% fall from the year-ago period’s reported figure.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader medical space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
NuVasive, Inc. currently has an Earnings ESP of +15.55% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for NuVasive’s earnings per share for the to-be-reported quarter indicates a 65.6% year-over-year increase. NUVA has witnessed one upward estimate revision in the past 30 days against none in the opposite direction.
Jazz Pharmaceuticals plc (JAZZ - Free Report) has an Earnings ESP of +2.12% and a Zacks Rank of 2 at present.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Jazz Pharmaceuticals’ bottom line for the to-be-reported quarter indicates a 12.4% improvement from the year-ago period’s actuals. JAZZ beat on earnings in three of the last four quarters and missed on the same once, the average surprise being 10.9%.
Masimo Corporation (MASI - Free Report) currently has an Earnings ESP of +4.35% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Masimo’s bottom line for the to-be-reported quarter has been unchanged over the past week. MASI beat earnings estimates in each of the last four quarters, the average surprise being 7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.