CIGNA Corp Earnings Cheat Sheet: Profit Declines

S&P 500 (NYSE:SPY) component CIGNA Corporation (NYSE:CI) posted a decrease in profit as revenue declined. 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 Third Quarter

Results: Net income for the health care plans company fell to $200 million (74 cents per share) vs. $307 million ($1.13 per share) a year earlier. This is a decline of 34.9% from the year earlier quarter.

Revenue: Rose 6.5% to $5.6 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CI reported adjusted net income of $1.20 per share. By that measure, the company fell short of mean estimate of $1.22 per share. It fell short of the average revenue estimate of $5.46 billion.

Quoting Management: “Our strong third quarter results reflect our continued focus on delivering solutions to improve the health and well being of our customers and clients through differentiated service and clinical quality in targeted geographies and customer segments,” said David M. Cordani, President and Chief Executive Officer. “We are pleased with the consistent execution of our growth strategy and the positive momentum it creates for 2012 and beyond for the benefit of customers, clients, health care professionals and shareholders.”

Key Stats:

Last quarter’s profit decrease ends a streak of three consecutive quarters of year-over-year profit increases. Net income rose 38.8% in the second quarter from the year earlier, while the figure rose 51.6% in the first quarter and 39.7% in the fourth quarter of the last fiscal year.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 24 cents, and in the first quarter, it was ahead by 28 cents.

Looking Forward: The average estimate for the fourth quarter remains unchanged at $1.18 a share. For the fiscal year, the average estimate has moved up from $5.05 a share to $5.27 over the last ninety days.

Competitors to Watch: Humana Inc. (NYSE:HUM), WellPoint, Inc. (NYSE:WLP), Aetna Inc. (NYSE:AET), UnitedHealth Group Inc. (NYSE:UNH), Health Net, Inc. (NYSE:HNT), Universal American Corp. (NYSE:UAM), HealthSpring, Inc (NYSE:HS), Molina Healthcare, Inc. (NYSE:MOH), Coventry Health Care, Inc. (NYSE:CVH), and WellCare Health Plans, Inc. (NYSE:WCG).

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(Source: Xignite Financials)

 

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