Uncovering Potential: Cigna Group's Earnings Preview

Cigna Group CI is preparing to release its quarterly earnings on Friday, 2025-05-02. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Cigna Group to report an earnings per share (EPS) of $6.35.

The announcement from Cigna Group is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings History Snapshot

During the last quarter, the company reported an EPS missed by $1.18, leading to a 3.97% increase in the share price on the subsequent day.

Here's a look at Cigna Group's past performance and the resulting price change:

Cigna Group Share Price Analysis

Shares of Cigna Group were trading at $340.04 as of April 30. Over the last 52-week period, shares are down 0.55%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analysts' Take on Cigna Group

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Cigna Group.

Analysts have provided Cigna Group with 15 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $367.8, suggesting a potential 8.16% upside.

Comparing Ratings Among Industry Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Labcorp Hldgs, Quest Diagnostics and DaVita, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Labcorp Hldgs, with an average 1-year price target of $268.8, suggesting a potential 20.95% downside.
• Analysts currently favor an Neutral trajectory for Quest Diagnostics, with an average 1-year price target of $184.93, suggesting a potential 45.62% downside.
• Analysts currently favor an Neutral trajectory for DaVita, with an average 1-year price target of $169.0, suggesting a potential 50.3% downside.

Peer Analysis Summary

The peer analysis summary presents essential metrics for Labcorp Hldgs, Quest Diagnostics and DaVita, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Cigna Group ranks in the middle for revenue growth among its peers. It is at the bottom for gross profit. It is at the top for return on equity.

All You Need to Know About Cigna Group

Cigna primarily provides pharmacy benefit management and health insurance services. Its PBM and specialty pharmacy services, which were greatly expanded by its 2018 merger with Express Scripts, are mostly sold to health insurance plans and employers. Its largest PBM contract is with the Department of Defense (current contract through 2029), and it recently won a multiyear deal with top-tier insurer Centene. In health insurance and other benefits, Cigna primarily serves employers through self-funding arrangements, and the company operates mostly in the US with 17 million US and 2 million international medical members covered as of December 2024.

Cigna Group's Financial Performance

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Cigna Group displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 28.66%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.17%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Cigna Group's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.43%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.91%, the company showcases effective utilization of assets.

Debt Management: Cigna Group's debt-to-equity ratio is below the industry average at 0.78, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Cigna Group visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.