CIGNA Corp Earnings: Booking a Profit Again
S&P 500 (NYSE:SPY) component CIGNA Corporation (NYSE:CI) reported its results for the fourth quarter. Cigna’s subsidiaries provide health care and related benefits, including health care products and services, group disability, life, and accident insurance.
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CIGNA Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for the health care plans company fell to $290 million ($1.04 per share) vs. $461 million ($1.69 per share) a year earlier. This is a decline of 37.1% from the year earlier quarter.
Revenue: Rose 0.6% to $5.46 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: CIGNA Corporation reported adjusted net income of $1.11 per share. By that measure, the company fell short of mean estimate of $1.18 per share. Analysts were expecting revenue of $5.51 billion.
Quoting Management: “We are confident that 2012 will be a significant year for Cigna.” Cordani said. “We are keenly focused on providing innovative products, retaining and growing our client and customer base in our targeted markets and significantly expanding our presence in the Seniors market through the acquisition of HealthSpring. With this foundation in place, Cigna is well positioned to continue to provide differentiated service, to engage and partner with physicians and to provide high quality care that improves the health and well being of each individual customer. This benefits our customers and clients as well as our other stakeholders.”
Revenue has risen the past four quarters. Revenue increased 6.6% to $5.61 billion in the third quarter. The figure rose 2.9% in the second quarter from the year earlier and climbed 4% in the first quarter from the year-ago quarter.
The company has now seen net income fall in each of the last two quarters. In the third quarter, net income fell 34.9% from the year earlier quarter.
The company has now fallen short of estimates in the last two quarters. In the third quarter, it missed expectations by 2 cents with net income of $1.20 versus a mean estimate of net income of $1.22 per share.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.41 a share to $1.39 over the last ninety days. In the last thirty days, the average estimate for the fiscal year has moved up from $5.27 per share to $5.29.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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