Cigna Q2 Results Miss Estimates; Cuts FY16 Adj. EPS View - Quick Facts

(RTTNews) - Health insurer Cigna Corp. (CI), which is in deal to be acquired by Anthem Inc. (ANTM), reported Friday that its second-quarter shareholders' net income declined to $510 million, or $1.97 per share from $588 million, or $2.26 per share a year ago.

The latest results included a charge of $0.10 per share, while prior year's charge was $0.25 per share.

Adjusted income from operations was $515 million or $1.98 per share, compared to $664 million or $2.55 per share a year ago.

On average, 17 analysts polled by Thomson Reuters expected earnings of $2.39 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues in the quarter were $9.96 billion, an increase of 5% from $9.49 billion, driven by continued growth in Cigna's targeted customer segments. Analysts expected revenues of $9.97 billion for the quarter.

Premiums increased to $7.65 billion from $7.43 billion last year.

Cigna reported solid performance in the Global Health Care segment and lower than expected results in the Group Disability & Life segment.

Looking ahead, for fiscal 2016, the company now expects consolidated adjusted income from operations in the range of $2.02 billion to $2.11 billion, or $7.75 to $8.10 per share. The company's previous estimate was $8.95 to $9.35 per share.

Analysts expect earnings of $9.29 per share for the year.

Cigna's outlook excludes the impact of additional prior year reserve development and potential effects of any future capital deployment.

Total revenue growth is expected to be mid single digit percentage range for the year.