CIGNA Corporation (NYSE: CI) stock rose positive in the morning but started correcting. The stock rose over 0.7% as of 9:59AM EDT (Source: Google finance). But Cigna stock generated over 33% in this year to date. The stock has a limited upside of 4.8% to a target price of $184.82, as per analysts consensus recommendation based on tipranks.com
The group expects an adjusted income from operations in the range of $2.50 billion to $2.58 billion, or $9.75 to $10.05 per share for the full year of 2017. Consolidated adjusted income from operations is forecasted to be in the range of $2.50 billion to $2.58 billion, or $9.75 to $10.05 per share.
Overall revenues rose 4% yoy to $10.3 billion, during the second quarter of 2017 boosted by the ongoing growth in the group’s targeted customer segments. Shareholders’ net income reached $813 million, or $3.15 per share during the second quarter of 2017, against $510 million, or $1.97 per share, for the second quarter of 2016. Ongoing medical cost management, coupled with favorable prior year reserve development and operating expense discipline drove the performance. But Cash and marketable investments fell to $2.2 billion as at June 30, 2017 as compared to $2.8 billion in December 31, 2016. Cigna repurchased 7.7 million shares of common stock for over $1.25 billion.
Global Health Care division showed strong performance signaling the group’s business is well-positioned. Premiums and fees rose 3% yoy during the second quarter of 2017 boosted by customer growth and specialty contributions in their Commercial business, which was partially offset by enrollment reductions as forecasted in their Government business. The medical customer base reached 15.7 million, rising 457,000 customers in this year to date, given their decent growth in all of their Commercial market segments.
Overall Commercial medical care ratio (“MCR”) reached 78.7% during the period driven by effective medical cost management and the impact of the health insurance tax moratorium. Overall Government MCR reached 86.1% for second quarter 2017 driven by Medicare Advantage and Medicare Part D businesses. Global Health Care operating expense ratio reached 19.9% reflects the impact of the health insurance tax moratorium, business mix changes and continued effective expense management. Global Health Care net medical costs payable was over $2.59 billion as at June 30, 2017 from $2.26 billion as at December 31, 2016.