Health insurance company Cigna (NYSE:CI) will be reporting results this Thursday before market hours. Here’s what to look for.
Cigna beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $69.57 billion, up 9.2% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ revenue estimates but full-year EPS guidance in line with analysts’ estimates. It lost -3,000 customers and ended up with a total of 16.35 million.
Is Cigna a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Cigna’s revenue to grow 6.4% year on year to $69.86 billion, slowing from the 28.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.88 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Cigna has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5% on average.
Looking at Cigna’s peers in the healthcare providers & services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. UnitedHealth delivered year-on-year revenue growth of 12.3%, meeting analysts’ expectations, and Elevance Health reported revenues up 9.6%, falling short of estimates by 1.2%. UnitedHealth traded down 16.4% following the results while Elevance Health was up 7.5%.
Read our full analysis of UnitedHealth’s results here and Elevance Health’s results here.
Investors in the healthcare providers & services segment have had fairly steady hands going into earnings, with share prices down 1.7% on average over the last month. Cigna is down 3.2% during the same time and is heading into earnings with an average analyst price target of $326.92 (compared to the current share price of $274.94).
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