One day after Express Scripts' earnings report, Cigna displayed its financial strength as well ahead of their $52 billion merger.
Once again, Cigna Corp. generated $11.5 billion quarterly total revenues, a 9% increase year-over-year, while achieving an adjusted income from operations of $945 million, according to its Q3 earnings report released Thursday morning.
The insurer's productive 2018 continued through Q2, where shareholders' net income reached $772 million, down from $806 million in Q2, but still enough to secure a price per share of $3.84. Sustained financial performance also prompted a revision of the insurer's year-end guidance, with adjusted income from operations slated to rise from 31% to 33%, up from 25% to 28% in Q2.
As with other large health insurers, this Q3 earnings report marked the first public financial disclosure from Cigna since it received federal approval for its proposed $52 billion megamerger with Express Scripts, who posted another solid quarter of revenue growth Wednesday afternoon.
The companies are expected to close the deal by the end of the year.
"Cigna continues to provide more affordable, personalized solutions for our customers and clients, enabling us to deliver strong results," David Cordani, CEO of Cigna, said in a statement. “Looking ahead to 2019, we expect to continue driving innovation, growth and value, all of which will be further enhanced through our pending combination with Express Scripts.”
ADDITIONAL Cigna Q3 EARNINGS REPORT HIGHLIGHTS:
- Cigna noted that the parent company currently held $1.3 billion in cash and marketable investments at the end of Q3.
- Cigna now estimates its 2018 total revenue growth will be 8.5%, up from 8% at the end of Q2.
- The insurer repurchased 1.3 million shares for $275 million over the past year, but does not expect to repurchase additional shares until after the merger with Express Scripts closes.
For complete financial information, review Cigna's filing with the Securities and Exchange Commission.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Just like their future partner Express Scripts, Cigna produced a solid earnings report as it heads into the homestretch of 2018.
Main statistics: $11.5 billion in total revenues, $772 million in net income, and 2018 total revenue growth upgraded to 8.5%.
CEO David Cordani said Cigna will aim to promote "innovation, growth and value" once the deal with Express Scripts is finalized.