CIGNA (CI) Beats Q3 Profit Views Even As Revenue Slides
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CIGNA (NYSE: CI) reported third-quarter earnings of $1.13 per share, ex-items, 10 cents better than the market consensus of $1.03. Revenues came in at $4.52 billion, compared to the analyst consensus of $4.59 billion.
The company's revenue dropped 6 percent from the same quarter last year, as premiums and fees declined by 3.5%.
The company said Thursday that its third-quarter profit jumped 92 percent, as a result of the improving equity markets.
"Our third quarter 2009 earnings were solid and reflect our continued focus on ongoing operating effectiveness initiatives to drive strong service delivery and further reduce expenses, particularly in our Health Care business," said H. Edward Hanway, Chairman and CEO of Cigna.
The insurer earned $329 million in profits for the quarter, nearly doubling the profits of $171 million from the same quarter last year.
Cigna's boost from the equity markets generated $16 million during the third quarter. This improvement in income by the company helped to offset the drop in enrollment of its members. Enrollment dropped 7 percent for the year-ago quarter to 11.1 million. This decline can be attributed to job cuts by employer, reducing the number of employees covered by company-sponsored health insurance.
Cigna's sees FY09 EPS of $3.80-$4.00 versus the consensus of $3.85.
Shares of Cigna are currently trading at $30.33 before the market opens today.
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