Investors Sell CIGNA and Buy Carefusion After Earnings

CIGNA Corporation (NYSE:CI) reported its results for the fourth quarter. 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. 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.

“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.”

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).

Carefusion Corporation (NYSE:CFN) reported its results for the second quarter. Net income for the medical instruments and supplies company rose to $95 million (42 cents per share) vs. $76 million (34 cents per share) in the same quarter a year earlier. This marks a rise of 25% from the year earlier quarter. Revenue rose 3.3% to $915 million from the year earlier quarter. Carefusion Corporation reported adjusted net income of 44 cents per share. By that measure, the company beat the mean estimate of 43 cents per share. Analysts were expecting revenue of $914.2 million.

“Our second quarter results were led by strong performance across the Medical Systems segment, with our three major businesses achieving positive gains and positioning us well for the second half of the year,” said Kieran Gallahue, chairman and CEO. “These results were partially offset by our performance in the Procedural Solutions segment, as we indicated in our preliminary earnings report last month. We continue to believe that our highly differentiated Procedural Solutions products will grow faster than the market and remain meaningful contributors to our long-term performance. “We continued to make good progress on our efforts to build our foundation and to invest in areas that will help simplify how we do business so we can expand margins and accelerate top-line growth over the long term. We remain committed to our long-term growth targets and are confident we will make progress against these goals this fiscal year.”

Competitors to Watch: Teleflex Incorporated (NYSE:TFX), Covidien plc (NYSE:COV), Thermo Fisher Scientific Inc. (NYSE:TMO), Cardinal Health, Inc. (NYSE:CAH), Masimo Corporation (NASDAQ:MASI), Angeion Corporation (NASDAQ:ANGN), NeuroMetrix, Inc. (NASDAQ:NURO), Baxter International Inc. (NYSE:BAX), C.R. Bard, Inc. (NYSE:BCR), and Stryker Corporation (NYSE:SYK).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com