Cigna Q3 Profit Rises, Revenues Up 7%; Updates Outlook

(RTTNews) - Cigna Corp. (CI) reported third quarter adjusted income from operations of $593 million, or $2.28 per share, compared to $548 million, or $2.06 per share, for the third quarter of 2014. Analysts polled by Thomson Reuters expected the company to report profit per share of $2.20 for the quarter. Analysts' estimates typically exclude special items.

The company said its results reflect strong revenue growth, continued favorable medical and operating costs in the Global Healthcare segment, as well as improvement in disability and life claims experience in the Group Disability and Life segment.

Shareholders' net income was $547 million, or $2.10 per share, for the third quarter of 2015, compared to $534 million, or $2.01 per share, for third quarter of 2014. Shareholders' net income for the third quarter of 2015 included a special item, which was a charge of $29 million after-tax, or $0.11 per share, for transaction costs related to Cigna's proposed merger with Anthem.

Consolidated revenues in the quarter were $9.4 billion, an increase of 7% over third quarter 2014. Analysts expected revenue of $9.51 billion for the quarter.

Cigna expects to grow revenue, adjusted income from operations, and adjusted income from operations on a per share basis in 2016. Consolidated revenue growth is expected to be approximately 9%. Cigna's outlook for full year 2015 consolidated adjusted income from operations is in the range of $2.19 billion to $2.24 billion, or $8.40 to $8.60 per share, an increase of $0.05 per share at the midpoint. In July, the company projected its consolidated adjusted income from operations in a range of $8.30 to $8.60 per share, and revenue growth of 8 to 10 percent.

Cigna's outlook for fourth quarter 2015 consolidated adjusted income from operations, is in the range of $420 million to $470 million, or $1.61 to $1.81 per share. Analysts expect the company to report fourth-quarter earnings per share of $1.92.