Cigna Q4 Results Top View; Sees Higher FY23 Earnings, But Below Market

Health services company Cigna Corp. reported Friday higher profit in its fourth quarter reflecting growth in both Evernorth and Cigna Healthcare segments. Adjusted earnings and topline beat market estimates.

Looking ahead for fiscal 2023, the company projects adjusted earnings and adjusted revenues to be higher than last year, but below market view.

In pre-market activity on the NYSE, Cigna shares were gaining around 1.1 percent to trade at $304.70.

David Cordani, chairman and chief executive officer, said, “We are carrying great momentum into 2023. Last year was a pivotal year of performance and growth for our company…”

For fiscal 2023, Cigna projects consolidated adjusted income from operations to be at least $7.33 billion, or at least $24.60 per share. This is higher than fiscal 2022 adjusted income from operations of $7.28 billion, or $23.27 per share.

On average, 22 analysts polled by Thomson Reuters expect earnings of $24.84 per share for the year. Analysts’ estimates typically exclude special items.

For the full year, adjusted revenues are expected to be at least $187.0 billion, higher than last year’s $180.64 billion. Analysts expect revenues of $189.75 billion for the year.

Further, the Board of Directors on Thursday declared a 10 percent increase in the quarterly dividend rate to $1.23 per share to be paid on March 23 to shareholders of record as of the close of trading on March 8.

In its fourth quarter, Cigna recorded shareholders’ net income of $1.17 billion, higher than $1.12 billion last year. Earnings per share grew to $3.83 from $3.39 a year ago.

Adjusted income from operations was $1.51 billion or $4.96 per share for the period, compared to $1.57 billion or $4.77 per share a year ago. Analysts expected the company to earn $4.86 per share for the quarter.

Revenue for the quarter edged up to $45.751 billion from $45.688 billion last year. Adjusted revenues grew to $45.743 billion from $45.676 billion a year ago.

The Street was looking for revenues of $45.71 billion for the quarter.

Evernorth segment’s adjusted revenues increased 3 percent from last year to $36.19 billion, reflecting strong organic growth in specialty pharmacy services.

Cigna Healthcare’s adjusted revenues decreased 1 percent to $11.13 billion. Excluding the divested Medicaid business, adjusted revenues grew 1 percent.

At the end of fiscal 2022, total customer relationships grew 2 percent to 189.7 million, and the total medical customer base grew 5 percent to 18.0 million, primarily driven by growth in U.S. Commercial. Meanwhile, total pharmacy customer base fell 2 percent to 105.6 million due to client attrition in early 2022.

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