CIGNA Earnings Preview: Analysts Expect Higher EPS, Revenue
CIGNA (NYSE: CI) announces its next round of earnings this Friday, October 28, 2011. Get the latest predictions in Benzinga's essential guide to the company's third quarter earnings report.
Earnings and Revenue:
Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of $1.23/share and revenues of $5.46 billion. CIGNA's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.10/share on revenues of $5.27 billion. We'll know on Friday whether the company has managed the estimated 11.8% increase in EPS and 3.6% rise in revenues on a year-over-year basis.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $1.29 | $1.09 | $1.01 | $1.06 |
| EPS Actual | $1.53 | $1.37 | $1.15 | $1.10 |
Stock Performance:
Shares of CIGNA were trading at $44.92 as of October 25, 2011. Since January 1st, shares have given investors a return of 22.6%. For a full 12 months, the return has risen by 25.4%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
- Long-term shareholders are already enjoying 12-month gains prior to the announcement
Average Stock Rating:
The average rating by analysts is a Hold. Over the past three months this rating's strength has declined slightly.
Competitors:
Wondering how CIGNA compares to rivals in the same sector? Here are a few of the company's peers.
- Aetna (NYSE: AET): Moderate Buy with a $1.35 recent quarter EPS
- Coventry Health Care (NYSE: CVH): Hold with a $0.83 recent quarter EPS
- Health Net (NYSE: HNT): Hold with a $0.76 recent quarter EPS
- HealthSpring (NYSE: HS): Moderate Buy with a $1.23 recent quarter EPS
CIGNA is in the insurance-multiline industry, which has experienced price/earnings growth of 0.7%.
Finally, a description of the company's main areas of operation: Cigna's subsidiaries provide health care and related benefits, including health care products and services, group disability, life, and accident insurance.
Take Action:
Now that you have reviewed all the numbers, be ready to move if the upcoming CIGNA earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.
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