Cigna on Friday raised its full-year earnings forecast and beat estimates for quarterly profit, helped by strong performance in its pharmacy benefit management business and lower-than-expected medical costs in its insurance arm.
CI's first-quarter results are likely to have benefited from growing pharmacy revenues and fees.
Besides Wall Street's top -and-bottom-line estimates for Cigna (CI), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended March 2025.
Cigna (CI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Cigna's strong growth, favorable valuation, and shareholder policies justify a "buy" rating, outperforming the S&P500 with a 37% return since May 2023. The integration of insurance with pharmacy benefit management, particularly through Evernorth, enhances cost control and customer retention, driving significant revenue growth. Despite rising medical costs and public dissatisfaction with insurers, Cigna's strategic focus on commercial health plans and PBMs mitigates risks and supports future growth.
Cigna is positioned to benefit from utilization normalization and aims for 10%-14% annual EPS growth by reducing Medicare exposure and improving Commercial business. Despite industry challenges, Cigna achieved 8%-9% YoY EPS growth in 2023-2024, demonstrating strong cost discipline and effective management. The sale of Cigna's Medicare unit and focus on lower-cost biosimilars and streamlined care accessibility are key strategic moves for future growth.
Cigna has made a series of upper management changes, which include making CFO Brian Evanko as the healthcare conglomerate's chief operating officer, and promoting his deputy Ann Dennison to the top finance role.
The Cigna Group (NYSE:CI ) Barclays 27th Annual Global Healthcare Conference Call March 12, 2025 2:00 PM ET Company Participants Brian Evanko - Chief Financial Officer of Cigna Group, President, Chief Executive Officer of Cigna Healthcare Conference Call Participants Andrew Mok - Barclays Andrew Mok Hi, good afternoon and welcome back to the Barclays Global Healthcare Conference. My name is Andrew Mok, I'm the facilities and managed care analyst here at Barclays.
US managed care insurers' fourth quarter 2024 earnings season was characterized by generally higher medical costs amid ongoing changes to federally subsidized healthcare plans that, in some cases, resulted in lower earnings per share estimates. Many of the largest publicly traded US health insurers saw their medical costs grow in the fourth quarter and full year 2024, resulting in decreased revenues and lower-than-anticipated EPS, largely in line with analyst projections. Nearly across the board, the largest publicly traded US managed care insurers saw their medical care ratios rise from 2023 as changes to Medicare Advantage and Medicaid continued to impact profits.
Wendell Potter, former Cigna VP, joins 'Money Movers' to discuss how to explain what the DOJ's considering around UnitedHealth, the DOJ's history with solutions, and much more.
Cigna looks undervalued at under 10x earnings, with strong growth potential. Evernorth continues to expand, adding to the company's long-term value. Large stock buybacks are supporting earnings per share and investor returns.
Leading health insurer Cigna Group Inc. NYSE: CI was praised for having the foresight to divest its Medicare Advantage (MA) business before rising acute care utilization rates would impact its medical care ratio (MCR) or medical benefits ratio (MBR), which the percentage of medical premiums paid out for medical reimbursement claims.