Benzinga - Cigna Corporation (NYSE: CI) has reported Q1 FY23 sales of $46.52 billion, up 6% Y/Y, beating the consensus of $45.53 billion, reflecting strong contributions from Evernorth Health Services and Cigna Healthcare. Adjusted revenues increased by 5% Y/Y.
Cigna saw its medical cost ratio - or spending on claims as a percentage of premiums - fall to 81.3% from 81.5% due to higher premiums and lower COVID-19 costs.
Its total premiums during the quarter rose 6.5% to $11.03 billion.
Revenue from Cigna's Evernorth unit, engaged in the pharmacy benefit management business, rose 7.7% to $36.18 billion due to strong growth in specialty pharmacy services and care delivery and management solutions.
The adjusted EPS of $5.41, down from $6.06 a year ago, came above the Wall Street estimate of $5.24.
Cigna raised its profit forecast by 10 cents to at least $24.70 per share.
Related: Risk-Radar Alert: Analyst Acknowledges Cigna's Unrecognized Market Risk Hedge, Bestows Neutral Stance.
Guidance: Cigna expects adjusted EPS of at least $24.70 compared to at least $24.60 expected earlier, vs. a consensus of $24.74.
It projects FY23 revenues of at least $188 billion vs. a consensus of $188.57 billion and $187 billion expected earlier.
For FY23, the company expects total Medical Customer Growth (lives) of at least 1,300,000.
Cigna cut the midpoint of its 2023 forecast for medical cost ratios by ten basis points to 81.5%-82.3%.
Price Action: CI shares are up 2.98% at $250.94 during the premarket session on the last check Friday.
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