Cigna pops on Medicare gain

Investor's Business Daily

The managed health care provider said Q3 earnings per share popped 41% to $1.69, well above analyst consensus of $1.36, boosted by growth in premiums and fees, largely from its acquisition earlier this year of Medicare specialist HealthSpring. Cigna's (CI) revenue climbed 31% to $7.36 bil, beating forecasts for $6.63 bil. The company closed its $3.8 bil purchase of HealthSpring in Jan., enabling it to increase Medicare plan business, a growth area as more older Americans use the system. Shares rose 4.5% to 53.27.

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