Cigna Lifts FY17 Forecast As Q2 Earnings Top View

(RTTNews) - Health insurer Cigna Corp. (CI) reported Friday higher profit in its second quarter with increased premiums and fees. Adjusted earnings topped market estimates, while top line came in line with the view. Citing the strong results, the company lifted its earnings forecast for fiscal 2017, and maintained revenue growth forecast.

For the second quarter, shareholders' net income was $813 million or $3.15 per share, compared to $510 million or $1.97 per share a year ago.

Cigna's adjusted income from operations was $750 million, or $2.91 per share, compared to $515 million, or $1.98 per share last year.

The results reflected significantly increased earnings contributions from each of the company's business segments.

Total revenues increased 4 percent to $10.32 billion in the second quarter from $9.96 billion a year ago, driven by continued growth in Cigna's targeted customer segments.

Consolidated operating revenues improved to $10.27 billion from $ 9.89 billion last year.

On average, analysts polled by Thomson Reuters expected earnings of $2.48 per share on revenues of $10.27 billion for the quarter. Analysts' estimates typically exclude special items.

Global Health Care premiums and fees increased 3 percent driven by customer growth. Global Supplemental Benefits premiums and fees grew 14 percent. Group Disability and Life premiums and fees were generally in-line with second quarter 2016.

Looking ahead, for fiscal 2017, the company now expects consolidated adjusted income from operations is in the range of $2.50 billion to $2.58 billion, or $9.75 to $10.05 per share, which represents per share growth of 20 percent to 24 percent over 2016.

The company previously expected adjusted income from operations to grow in the range of 15 percent to 20 percent, to $2.41 billion to $2.53 billion in 2017, or $9.25 to $9.75 per share.

Analysts expect earnings of $9.79 per share for the year.

In 2016, Cigna's adjusted income from operations was $2.1 billion, or $8.10 per share.

Total revenue growth for the year is still expected to be in the range of 3 percent to 4 percent, and the company expects global medical customer growth of 500,000 to 600,000 customers.

In pre-market activity, Cigna shares were trading at $176.75, up 0.40 percent.