- EPS Forecast Update: Cigna has increased its full-year adjusted operating earnings per share (EPS) forecast to at least $29.60, up from the previous forecast of at least $29.50, aligning with market estimates.
- Healthcare Income Projections: The company expects Cigna Healthcare’s adjusted pre-tax income from operations to be at least $4.13 billion, an increase from the previous minimum projection of $4.10 billion.
- Medical Care Ratio: The medical care ratio for Cigna Healthcare is projected to remain in the range of 83.2% to 84.2%, with an estimate of 83.9%.
- Evernorth Income Projections: Cigna continues to forecast Evernorth’s adjusted pre-tax income from operations at a minimum of $7.20 billion.
- First Quarter EPS Results: Adjusted operating EPS for the first quarter was reported at $6.74, surpassing the previous year’s $6.47 and exceeding the market estimate of $6.35.
- Revenue Growth: Adjusted revenue for the first quarter reached $65.45 billion, marking a 14% increase year over year, and topping estimates of $60.46 billion.
- Evernorth Revenue Increase: Evernorth’s adjusted revenues rose by 16% year over year to $53.68 billion.
- Cigna Healthcare Revenue Growth: Cigna Healthcare’s adjusted revenues increased by 9.1% to $14.48 billion year over year.
- Pharmacy Revenue Surge: Pharmacy revenue climbed by 16% to $48.63 billion year over year.
- Premiums Increase: The premiums collected totaled $12.74 billion, reflecting a 9.8% rise year over year.
- Global Medical Customer Base: Cigna’s global medical customer base decreased by 5.9% year over year to 18.04 million, falling short of the estimate of 18.55 million.
- Future Financial Decisions: The outlook incorporates the effects of anticipated future share repurchases and expected dividends in 2025.
Cigna Group on Smartkarma
Analyst coverage of Cigna Group on Smartkarma has been insightful, with Baptista Research providing detailed reports on the company’s performance. In one report titled “Cigna Group: Strategic Growth & Capital Investments Driving Our Optimism!” the analysts highlighted a mixed performance in the fourth-quarter and full-year 2024 financial results. Despite challenges, the company reported a strong revenue growth of 27% to around $247 billion, though adjusted earnings per share fell slightly below expectations, indicating some profitability pressure.
Another report by Baptista Research, “Cigna Corporation: Specialty Market Position & Biosimilars Strategy Driving Our Bullishness! – Major Drivers,” discussed the decent third-quarter 2024 earnings of Cigna Group, revealing a net income of $739 million or $2.63 per share. However, the figures were impacted by a significant non-cash after-tax net realized investment loss of $1 billion related to VillageMD, leading to asset write-downs and impairment charges, which were excluded from adjusted operating income and earnings per share calculations.
A look at Cigna Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Cigna Group shows a promising long-term outlook. The company received a high score of 5 for Momentum, indicating strong positive price trend and investor sentiment. This suggests that Cigna Group is experiencing upward momentum that may continue in the future.
Additionally, across other factors like Value, Dividend, Growth, and Resilience, Cigna Group received a moderate score of 3. This signals that while the company is stable and performing well in these areas, there is room for improvement to enhance its overall competitive position in the market. Overall, Cigna Group, operating in the insurance sector, aims to provide a range of insurance products and services to individuals, families, and businesses globally.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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