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Cigna (CI) Q4 Earnings and Revenues Beat Estimates, Rise Y/Y

Zacks Equity Research

Cigna Corp. CI came up with adjusted earnings of $4.54 per share in fourth-quarter 2019, surpassing the Zacks Consensus Estimate by 2.9%. Quarterly earnings were up 75% year over year.

Cigna’s revenues of $36.6 billion beat the Zacks Consensus Estimate by 3.7%. Revenues grew 167% year over year owing to the acquisition of Express Scripts.

Among the revenue components, pharmacy revenues were $25.6 billion compared with $3.3 billion in the year-ago quarter, premiums were up 9.8% year over year to $10 billion while fees increased 50.2% to $2.2 billion. The growth in pharmacy revenues was backed by the acquisition of pharmacy benefit manager Express Scripts.

The company’s medical enrollment grew by 184,000 lives from the prior-year quarter to 17.15 million customers, driven by growth in Commercial and International markets.

Cigna Corporation Price, Consensus and EPS Surprise

Cigna Corporation Price, Consensus and EPS Surprise

 

Cigna Corporation price-consensus-eps-surprise-chart | Cigna Corporation Quote

Segment Details

Health Services – Adjusted revenues of $25.6 billion were up from $3.3 billion in the year-ago quarter, primarily due to the acquisition of Express Scripts completed in December 2018.

Integrated Medical – Adjusted revenues of $9.2 billion were up 11% year over year, driven by increase in Commercial customer as well as premium growth.

International Markets – Adjusted revenues of $1.43 billion were up 5.5% year over year, reflecting continued business growth.

Capital Position

Cigna’s debt-to-capitalization ratio improved to 45.2% as on Dec 31, 2019, from 50.9% as of Dec 31, 2018.

Shareholders’ equity as of Dec 31, 2019 was $45.3 billion, up 10.5% year over year.

2020 Guidance

The company expects earnings per share in the range of $18-$18.6; adjusted revenues in the range of $154 billion to $156 billion. Medical customers are projected to grow between 150,000 and 250,000.
Medical care ratio is expected in the range of 80.2-81.2%.

Cigna carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other stocks in the healthcare space that have reported fourth-quarter earnings so far, UnitedHealth Group Inc. UNH and Humana Inc. HUM beat earnings estimates by 3.45% and 3.64%, respectively, while Centene Corp. CNC missed the same by 1.4%.

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Cigna Corporation (CI) : Free Stock Analysis Report
 
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