Cigna Corporation CI has reported Q2 FY23 sales of $48.62 billion, up 7% Y/Y, beating the consensus of $47.13 billion, reflecting strong contributions from Evernorth Health Services and Cigna Healthcare.
Cigna saw that its medical cost ratio - or spending on claims as a percentage of premiums - was 81.2% compared to 80.7% a year ago.
Its total premiums during the quarter rose 6% to $11.04 billion. Total medical customers grew 8% from December 31, 2022, to 19.5 million, primarily driven by growth in U.S. Commercial fee-based customers as well as in Individual and Medicare Advantage customers.
Also Read: Biden Administration Releases Revised Guidance For Medicare Drug Price Negotiation Amid Industry Lawsuits.
Revenue from Cigna's Evernorth unit, engaged in the pharmacy benefit management business, rose nearly 10% to $38.21 billion, helped by strength in its specialty pharmacy services.
The adjusted EPS of $6.13, down from $6.20 a year ago, came above the Wall Street estimate of $5.98.
Guidance: Cigna reaffirms its Q2 adjusted EPS guidance of at least $24.70 vs. a consensus of $24.69.
It projects FY23 revenues of at least $190 billion vs. a consensus of $191.69 billion and $188 billion expected earlier.
For FY23, the company expects total Medical Customer Growth (lives) of at least 1,400,000 compared to prior guidance of 1,300,000.
Cigna reiterates the 2023 forecast for a medical cost ratio of 81.5%-82.3%.
Price Action: CI shares are down 4.07% at $287.23 on the last check Thursday.
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