Cigna's Q3 Profit Beats Street On Strong Demand For Pharmacy Benefit Management's Specialty Drugs, New Clients
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On Thursday, Cigna Corporation (NYSE:CI) reported third-quarter sales of $63.7 billion, up 30% year-over-year, beating the consensus of $59.35 billion.
The increase was primarily driven by significant growth in Evernorth Health Services, reflecting large client wins and strong specialty volume growth.
Adjusted income from operations for the third quarter of 2024 increased by 5%, reflecting strong contributions from Evernorth Health Services, particularly within Specialty and Care Services, partially offset by lower net investment income.
Also Read: Pharmacy Retailer CVS Health Backs Away From Annual Forecast, Names New CEO
Cigna Healthcare sales increased 3% to $13.16 billion, reflecting premium rate increases to cover expected increases in underlying medical costs, partially offset by a decrease in Individual and Family Plans customers.
Cigna's medical cost ratio – or spending on claims as a percentage of premiums – was 82.8% compared to 80.5% a year ago, reflecting the business mix and one extra business day in the third quarter of 2024.
Total premiums during the quarter rose 4.0% to $11.44 billion.
Evernorth Health Services sales increased 36% to $52.64 billion. Pharmacy Benefit Services sales increased 50% to $28.79 billion.
The total number of medical customers fell 2.9% to 19.05 million. Total customer relationships increased 12% to 183.51 million.
Total pharmacy customers increased 22% to 120 million. The adjusted EPS of $7.51, increased from $6.77 a year ago, beat the Wall Street estimate of $7.20.
Guidance: Cigna reaffirms 2024 adjusted EPS guidance of at least $28.40 versus consensus of $28.50. The company expects a fiscal year 2024 medical cost ratio of 81.7%-82.5%.
Price Action: CI stock is up 3.93% at $325.18 at the last check on Thursday.
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This article Cigna's Q3 Profit Beats Street On Strong Demand For Pharmacy Benefit Management's Specialty Drugs, New Clients originally appeared on Benzinga.com
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