CIGNA Corp Earnings: Four Quarters in a Row of Falling Profit

Rising revenue was not enough for S&P 500 (NYSE:SPY) component CIGNA Corporation (NYSE:CI) as the health care plans company saw profit fall in the first 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 First Quarter

Results: Net income for CIGNA Corporation fell to $371 million ($1.28 per share) vs. $413 million ($1.57 per share) a year earlier. This is a decline of 10.2% from the year-earlier quarter.

Revenue: Rose 25.6% to $6.8 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: CIGNA Corporation fell in line with the mean analyst estimate of $1.28 per share. Analysts were expecting revenue of $6.71 billion.

Quoting Management: “Our first quarter 2012 results exceeded our expectations for earnings and customer growth, reflecting continued effective execution of our strategy with solid contributions from each of our ongoing businesses,” said David M. Cordani, President and Chief Executive Officer. “We are pleased that our health and wellness programs continue to deliver value for customers who are seeking to improve their overall health status while achieving a more sustainable level of cost. Our recent acquisition of HealthSpring positions us to effectively serve the U.S. Seniors market, and we are partnering with physicians on a collaborative and accountable model for U.S. Health Care. Through these initiatives, and our investments in emerging economies, we continue to strengthen Cigna’s capabilities and position Cigna for long-term growth for the benefit of all of our customers and shareholders.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 0.6% to $5.46 billion in the fourth quarter of the last fiscal year. The figure rose 6.6% in the third quarter of the last fiscal year from the year earlier and climbed 2.9% in the second quarter of the last fiscal year from the year-ago quarter.

After missing the mark in the previous two quarters, the company met analyst estimates. In the fourth quarter of the last fiscal year, it fell short by 7 cents, and in the third quarter of the last fiscal year, it was under-estimate by 2 cents.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from $1.53 per share to $1.46, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $5.42 per share, down from $5.68 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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