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Cigna (CI) Q1 Earnings & Revenues Beat, Ups Outlook

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Have you been eager to see how Cigna Corp. (CI - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this multi-line insurer’s earnings release this morning:

An Earnings Beat

Cigna reported net operating earnings per share of $2.77, comfortably beating the Zacks Consensus Estimate of $2.44 and was up 19% year over year.  Earnings beat reflected strong contribution from each of its business segments.

Earnings Surprise History

Regarding earnings surprise history, before posting an earnings beat in Q1, the company delivered positive earnings surprises in three of the trailing four quarters, but the average remains a negative0.30%.

Revenue Came In Higher Than Expected   

Cigna posted net revenues of $10.34 billion, which outpaced the Zacks Consensus Estimate of $9.94 billion. Further, it was up 5% year over year.

Cigna Corporation Price and EPS Surprise

Cigna Corporation Price and EPS Surprise | Cigna Corporation Quote

Key Takeaways

Total premium were $8.1 billion up from $7.7 billion in the year ago quarter.
Adjusted income from operations of $719 million was up from $601 million in the year ago quarter.

The medical customer base totaled 15.7 million, driven by organic growth in all of its Commercial market segments.

The Total Commercial medical care ratio of 77.6% reflected the consistent strong performance of its Commercial employer business and favorable prior year reserve development.

Guidance Update

Driven by strong earnings Cigna raised its financial outlook. It now expects Global medical customer base to grow in the range of 500,000 to 600,000 lives in 2017

Adjusted income from operations is projected to grow in the range of 15% to 20%, to $2.41 billion to $2.53 billion in 2017, or $9.25 to $9.75 per share.

What Zacks Rank Says

Cigna carries a Zacks Rank # 2 (Buy). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now, it all depends on the analysts’ take on the just-released earnings report. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here)

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

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