Earnings Preview: Analysts Expect CIGNA's Revenue, Earnings to Dip

CIGNA CI announces its next round of earnings this Thursday, August 4, 2011. Here is Benzinga's everything-that-matters guide for this Thursday's second quarter earnings announcement.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of $1.29/share and revenues of $5.32 billion. Investors will be keen to see how this quarter's numbers stack up against the year-ago quarter's positive EPS of $1.38/share on revenues of $5.35 billion. Investors are bracing themselves for Thursday when we'll learn if CIGNA reports lower EPS and slightly reduced revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of CIGNA were trading at $49.77 as of July 29, 2011. Since January 1st, shares of CIGNA have given investors a return of 35.9%. For a full 12 months, the return has risen by 37.9%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for CIGNA is a Hold. This rating hasn't budged over the past three months.

Competitors:

Want to check out the performance of CIGNA closest competitors? Take a look at some of the company's peers in the healthcare sector.

• Aetna AET: Moderate Buy with a $1.35 recent quarter EPS
• Coventry Health Care CVH: Hold with a $0.83 recent quarter EPS
• Health Net HNT: Hold with a $0.61 recent quarter EPS
• HealthSpring HS: Hold with a $0.75 recent quarter EPS

The insurance-multiline company's industry has seen price/earnings growth of 0.1% during the current fiscal year.

Finally, a description of the company's main areas of operation: Cigna's subsidiaries provide health care and related benefits, including health care products and services, group disability, life and accident insurance.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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