- Cigna expects its adjusted operating earnings per share (EPS) in 2025 to be at least $29.50, while estimates suggest $31.50.
- The Cigna Healthcare medical care ratio is projected between 83.2% and 84.2%, though estimates were at 81.8%.
- Projected adjusted revenue is at least $252 billion, slightly above the estimated $251.67 billion.
- Cash flow from operations is forecasted to be approximately $10 billion, with estimates at $10.89 billion.
- Fourth-quarter adjusted operating EPS was $6.64, down from $6.79 year-over-year, and below the estimate of $7.82.
- Fourth-quarter adjusted revenue increased by 28% year-over-year to $65.68 billion, surpassing estimates of $63.51 billion.
- Evernorth, a Cigna subsidiary, reported adjusted revenues of $53.74 billion, a 33% year-over-year increase, versus an estimate of $52.83 billion.
- Cigna Healthcare’s adjusted revenues rose by 2.5% year-over-year to $13.33 billion.
- The Cigna Healthcare medical care ratio increased to 87.9% from 82.2% year-over-year, higher than the estimated 84.6%.
- Pharmacy revenue showed significant growth, reaching $49.94 billion, a 36% year-over-year increase.
- Premiums rose by 2.9% year-over-year, totaling $11.50 billion.
- The number of global medical customers decreased by 3.2% year-over-year to 19.15 million, slightly above the estimate of 19.11 million.
- Cigna declared an 8% increase in the quarterly dividend to $1.51 per share.
- The company approved a $6.0 billion increase in share repurchase authorization, bringing the total to $10.3 billion.
- CEO David Cordani stated that while higher medical costs affected fourth-quarter earnings, corrective actions are being taken for short-term pressures alongside steps to enhance long-term growth.
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Cigna Group on Smartkarma
Analysts at Baptista Research on Smartkarma are bullish on Cigna Group following the company’s third-quarter 2024 earnings report. According to their research report, titled “Cigna Corporation: Specialty Market Position & Biosimilars Strategy Driving Our Bullishness! – Major Drivers,” Cigna Group revealed a net income of $739 million or $2.63 per share for the quarter. Despite a non-cash after-tax net realized investment loss of $1 billion related to VillageMD impacting the figures, analysts remain optimistic about Cigna Group‘s market position and growth strategy.
A look at Cigna Group Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
Analysts at Smartkarma have provided an overall outlook for Cigna Group, with the company scoring a consistent 3 across key factors such as Value, Dividend, Growth, Resilience, and Momentum. This indicates a balanced profile for the insurance company in the long term. Cigna Group‘s value proposition, dividend policy, growth prospects, resilience to market fluctuations, and momentum in the industry all contribute to its stable outlook.
The Cigna Group, operating in the insurance sector, positions itself with a solid foundation based on the analysis by Smartkarma. Offering a range of insurance products and services including life, accident, disability, medicare, and dental coverages, the company caters to individuals, families, and businesses globally. With a consistent score of 3 in various strategic aspects, Cigna Group demonstrates a well-rounded approach to sustaining its market position and navigating future challenges.
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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