On Thursday, Cigna Corporation (NYSE:CI) reported first-quarter sales of $57.26 billion, up 23% Y/Y, beating the consensus of $55.47 billion, primarily driven by significant growth in Evernorth Health Services, reflecting several large client wins.
Adjusted income from operations increased 16% to $1.88 billion, reflecting strong contributions from Cigna Healthcare and Evernorth Health Services.
Cigna Healthcare sales increased 4% Y/Y to $13.3 billion, reflecting premium rate increases to cover expected increases in underlying medical costs and business mix.
Also Read: Arthritis Patients – Cigna's Evernorth To Offer Humira Biosimilar At No Out-of-Pocket Cost.
Cigna's medical cost ratio – or spending on claims as a percentage of premiums – was 79.9% compared to 81.3% a year ago, reflecting continued strong performance across U.S. Healthcare businesses driven by effective pricing execution, affordability initiatives, and business mix, including within the Individual and Family Plans business.
Total premiums during the quarter rose 5% to $11.6 billion.
Evernorth Health Services sales increased 28% Y/Y to $46.23 billion, reflecting several large client wins and continued expansion of existing relationships, and strong organic growth in Specialty and Care Services businesses.
The total number of medical customers fell 1.5% to 19.18 million.
Total pharmacy customers increased 24% to 122.8 million.
The adjusted EPS of $6.47, up from $5.41 a year ago, beat the Wall Street estimate of $6.37.
Guidance: Cigna reaffirms fiscal year 2024 adjusted revenues of at least $235 billion, versus consensus of $235.10 billion.
Cigna raises 2024 adjusted EPS guidance to at least $28.40 versus prior guidance of $28.25 and consensus of $28.44.
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% versus prior guidance of 81.7%-82.7%.
Price Action: CI shares are down 1.9% at $350.34 at last check Thursday.
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