Cigna (CI) Beats on Earnings and Revenues, Guides 2015 - Tale of the Tape
Bloomfield, CT based Cigna Corp. (CI) is a global health service company targeting quality care and service for its customers at low costs.
Cigna a boasts an Accountable Care history spanning seven years, now has 114 Cigna Collaborative Care arrangements in 28 states covering reach more than 1.2 million commercial customers
Cigna’s strong global supplemental business, Pharmacy Benefit Management (PBM) Services Agreement, organizational efficiency plans as well as expansion of Seniors and Medicare business position it well for long run.
However, the company continues to face pressure from the medicare advantage rate cut and higher medical cost.
Though the company faces headwinds, positive tidings have been driving bullish sentiments as evident from consensus estimate being north bound. Cigna does have a decent history when it comes to earnings as the stock has beaten estimates in all the last four reported quarters making for an average surprise of 8. 9%.
Currently, Cigna has a Zacks Rank #3 (Hold), but that could definitely change following Cigna earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Cigna beat on earnings. Our consensus called for EPS of $1.65, and the company reported EPS of $1.69
Revenue: Revenues of $8.9 billion surpassed the Zacks Consensus Estimate of $8.6 billion.
Key Stats to Note:
Premiums and fees of $6.3 billion increased 9.2% year over year.
Mail order pharmacy revenues of $614 increased 24.3% year over year.
Global Medical Customers totaled 14.5 million as on Dec 31, 2014, up 2.7% over 2013 end level.
In 2014, Cigna spent about $1.63 billion to buyback 18.5 million common shares
For 2015, the company expects operating net income between $2.1 billion and $2.2 billion, or $8.00 to $8.40 per share. It expects 8%-10% revenue increase in 2015.
Check back later for our full write up on this Cigna earnings report later!
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