CIGNA's Net Income Falls

CIGNA (NYSE: CI) announced a decrease in profit in the most recent quarter as its sales declined. Why did the company's profits tumble? Let's dig a bit deeper. Then we can see what steps you can take.

Earnings and Revenue:
The company's EPS failed to meet Wall Street expectations but revenue was strong. CIGNA reported adjusted net income of $1.20/share and revenues of $5.6 billion. Analysts were expecting adjusted net income of $1.22/share and revenues of $5.46 billion. Revenue rose 6.5% from the same period last year.
Last quarter's falling profit ends a streak of three consecutive quarters of year-over-year profit increases. Growing revenue in the last quarter extends CIGNA's streak of four consecutive quarters of revenue increases.

Income:
For the year, CIGNA reported net income of $5.25/share. The company trumped analyst projections of $4.85 by 8.2%. According to the reported number, the company's income fell 34.9% from last year's levels.

Conference Call:
The conference call for third quarter earnings can be accessed here.

Official Comment:
"Our strong third quarter results reflect our continued focus on delivering solutions to improve the health and well being of our customers and clients through differentiated service and clinical quality in targeted geographies and customer segments," said David M. Cordani, President and Chief Executive Officer. "We are pleased with the consistent execution of our growth strategy and the positive momentum it creates for 2012 and beyond for the benefit of customers, clients, health care professionals and shareholders."

Industry:
The insurance-multiline company's industry is currently enjoying price/earnings growth of 0.7%.

What to Do Next:
Now you're all set to decide what to do with those CIGNA shares until the next earnings announcement. Whether you buy, sell, or hold, check back with us before the company's next earnings release for a full preview.

• To see up-to-date news on CIGNA, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here