Cigna's Q3 Earnings Sharply Beats Street View; Raises FY21 Outlook

Cigna Corp CI reports Q3 total revenues of $44.3 billion, +8.6% Y/Y, ahead of the consensus of $42.91 billion, reflecting strong contributions from each of Cigna's ongoing businesses.
Q3 adjusted EPS reached $5.73 compared with $4.41 a year ago, beating the consensus of $5.22.
The pharmacy customer base grew to 103.6 million, up 6.3% Y/Y, and an organic increase of 4.8 million YTD, driven by ongoing solid retention and new sales.
The total medical customer base reached 17 million, increasing 368,000 customers YTD, up marginally by 0.35% Y/Y.
Evernorth adjusted revenues increased 13% Y/Y $33.6 billion driven by strong organic growth.
Evernorth fulfilled 411 million pharmacy scripts, +8% Y/Y led by organic growth.
U.S. Medical adjusted revenues grew 9% to $10.49 billion.
The debt-to-capitalization ratio was 42%, reflecting an increase in short-term debt levels and execution of the accelerated share repurchase agreements.
The SG&A expense ratio was 7%, a decrease from 8.1% from Q3 2020.
Guidance: Cigna expects FY21 sales of at least $172 billion ($170 billion previously).
It expects adjusted EPS guidance of at least $20.35 versus the consensus of $20.29.
The outlook continues to include a net unfavorable impact from COVID-19.
Related: Cigna Offloads Life Insurance Business To Chubb In $5.75B Deal.
Price Action: CI shares are up 0.25% at $218.79 during the premarket session on the last check Thursday.

Earnings Calendar