On Thursday, Cigna Corporation (NYSE:CI) reported second-quarter sales of $60.52 billion, up 25% year-over-year, beating the consensus of $58.33 billion.
The increase was primarily driven by significant growth in Evernorth Health Services, reflecting several large client wins.
Adjusted income from operations increased 5% to $1.91 billion, reflecting strong contributions from Evernorth Health Services and Cigna Healthcare.
Also Read: Cigna’s Specialty Pharmacy Leadership Expected to Drive Long-Term EPS Growth, Analyst Says.
Cigna Healthcare sales increased 3% to $13.14 billion, reflecting premium rate increases to cover expected increases in underlying medical costs, partially offset by business mix.
Cigna’s medical cost ratio – or spending on claims as a percentage of premiums – was 82.3% compared to 81.2% a year ago, reflecting business mix and the aforementioned prior year revenue adjustments, partially offset by effective pricing execution and affordability initiatives.
Total premiums during the quarter rose 3.8% to $11.45 billion.
Evernorth Health Services sales increased 30% to $49.55 billion, reflecting client wins and organic growth.
The total number of medical customers fell 2.4% to 19.04 million. Total customer relationships increased 13% to 186.2 million.
Total pharmacy customers increased 24% to 122.5 million. The adjusted EPS of $6.72, increased from $6.13 a year ago, beat the Wall Street estimate of $6.41.
Guidance: Cigna reaffirms fiscal year 2024 adjusted revenues of at least $235 billion versus consensus of $235.51 billion.
The company expects 2024 adjusted EPS guidance of at least $28.40 versus consensus of $28.50.
For the fiscal year 2024, the company reaffirms medical customers’ prior guidance of around 19.3 million.
Cigna sees a fiscal year 2024 medical cost ratio of 81.7%-82.5%.
Price Action: CI stock is down 4.51% at $332.96 at the last check on Thursday.
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