Cigna Corp. (CI) Offers Strong Prelim. Q2 Results; Updates FY15 Outlook
Cigna Corp. (NYSE: CI) announced preliminary financial results for the second quarter 2015.
Consolidated revenues in second quarter 2015 are expected to be approximately $9.5 billion, an increase of 9% over second quarter 2014, reflecting growth in Cigna's targeted customer segments.
Cigna's adjusted income from operations1 for second quarter 2015 is expected to be at least $650 million, or at least $2.50 per share, compared to $559 million, or $2.07 per share, for second quarter 2014. Results reflect strong revenue growth, specialty contributions, and continued effective medical cost management.
Shareholders’ net income is expected to be at least $574 million, or at least $2.21 per share, for the second quarter of 2015, compared to $573 million, or $2.12 per share, for second quarter of 2014. Shareholders’ net income for the second quarter of 2015 will include a special item1, which is a charge of $65 million after-tax, or $0.25 per share, related to costs associated with a previously announced early redemption of long term debt.
*** The Street sees Q2 revenue of $9.53 billion and EPS of $2.25.
These preliminary estimates are based on the most current information available to management as of the date of this release. Our actual results may differ from these preliminary estimates due to, among other things, the completion of our accounting close procedures and other developments that may arise between now and the time that our consolidated financial results for the second quarter 2015 are reported.
2015 Outlook
Cigna's updated outlook for full year 2015 consolidated adjusted income from operations1,2 is now in the range of $2.16 billion to $2.24 billion, or $8.30 to $8.60 per share. Cigna’s outlook also excludes the potential effects of future capital deployment.3
Cigna continues to expect consolidated revenues to grow in the range of 8% to 10% in 2015.
*** The Street sees FY15 revenue of $38.3 billion and EPS of $8.53.
The foregoing statements represent the Company’s current estimates of Cigna's 2015 consolidated adjusted income from operations1,2 as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the Cautionary Note Regarding Forward-Looking Statements included in this release. Management does not assume any obligation to update these estimates.
Cigna will report its complete financial results for the second quarter 2015 no later than 6:30 a.m. Eastern Time (ET) July 30, 2015.
