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Cigna (CI) Eyes Q1 Earnings Beat on Cigna Healthcare Show

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Cigna Corporation CI is expected to keep its earnings beat streak alive for first-quarter 2022. Results are set to be released on May 6, before the opening bell.

In the last reported quarter, the health service company’s adjusted earnings per share of $4.77 beat the Zacks Consensus Estimate by 1.9%, primarily on solid contributions from its Evernorth and Cigna Healthcare businesses, and sound medical customer growth. However, the upside was partly offset by escalating benefits and expenses.

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

Trend in Estimate Revision

The Zacks Consensus Estimate for first-quarter earnings per share of $5.13 has witnessed one upward revision and no downward movement in the past 30 days. This estimate is indicative of an 8.5% improvement from the year-ago quarter’s reported earnings of $4.73 cents per share. The Zacks Consensus Estimate for revenues is pegged at $43.6 billion, suggesting a rise of 6.3% from the year-ago quarter’s reported figure.

Cigna’s earnings beat estimates in each of the trailing four quarters, the average being 6%. This is depicted in the graph below.

Cigna Corporation Price and EPS Surprise

Cigna Corporation Price and EPS Surprise
Cigna Corporation Price and EPS Surprise

Cigna Corporation price-eps-surprise | Cigna Corporation Quote

What the Quantitative Model Suggests

Our proven model 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 the case here.

Earnings ESP: Cigna’s has an Earnings ESP of +6.26%. This is because the Most Accurate Estimate is currently pegged at $5.45 per share, higher than the Zacks Consensus Estimate of $5.13. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Cigna currently holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Driving Q1 Earnings

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 scripts volumes in the to-be-reported quarter.

The Zacks Consensus Estimate for pharmacy revenues implies a 9.7% rise from the year-ago quarter’s actuals, which might have aided Evernorth’s first-quarter performance. The consensus mark for Evernorth’s pre-tax adjusted income indicates an upside of 9.6% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for pre-tax adjusted income for the Cigna Healthcare unit predicts a 22.4% increase from the year-ago comparable period’s reading. This might have poised CI well for a bottom-line improvement from the year-ago quarter’s reported number and an earnings beat for the March quarter. Also, the consensus mark for total premiums suggests a 7.3% increase from the prior-year quarter’s finals.

However, due to a low-interest rate environment, Cigna’s investment income might have taken a hit in the first quarter. The Zacks Consensus Estimate for net investment income indicates a 42.2% decline from the year-ago period’s tally. This might have partially offset the positives in the quarter under review.

Other Stocks That Warrant a Look

Here are some other companies worth considering from the Finance space, as our model shows that these too have the right combination of elements to beat on earnings this time around:

Horace Mann Educators Corporation HMN has an Earnings ESP of +3.74% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for Horace Mann’s bottom line for the to-be-reported quarter is pegged at 94 cents per share.

HMN’s earnings beat estimates in each of the last four quarters, the average being 22.8%.

BRP Group, Inc. BRP currently has an Earnings ESP of +3.63% and a Zacks Rank of 3.

The Zacks Consensus Estimate for BRP Group’s bottom line for the to-be-reported quarter indicates a 15.9% rise from the year-ago quarter’s reported figure.

BRP’s earnings beat estimates in three of the last four quarters and met the mark once, the average surprise being 24.1%.

Primerica, Inc. PRI has an Earnings ESP of +3.68% and is a Zacks #3 Ranked player.

The Zacks Consensus Estimate for Primerica’s bottom line for the to-be-reported quarter suggests an improvement of 14.3% from the year-ago quarter’s reported figure.

PRI’s earnings beat estimates in two of the last four quarters and missed the mark twice, the average surprise being 1.9%.

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


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Cigna Corporation (CI) : Free Stock Analysis Report

Primerica, Inc. (PRI) : Free Stock Analysis Report

Horace Mann Educators Corporation (HMN) : Free Stock Analysis Report

BRP Group, Inc. (BRP) : Free Stock Analysis Report

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