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The Cigna (CI) Group Falls 10% as Earnings Disappoint
The Cigna (CI) Group Falls 10% as Earnings Disappoint

Yahoo

time01-08-2025

  • Business
  • Yahoo

The Cigna (CI) Group Falls 10% as Earnings Disappoint

We recently published . The Cigna Group (NYSE:CI) is one of the worst-performing stocks on Thursday. The Cigna Group declined by 10.23 percent on Thursday to close at $267.38 apiece as investor sentiment was dampened by its flat earnings performance in the second quarter of the year. In its updated report, The Cigna Group (NYSE:CI) said net income attributable to shareholders ended flat at $1.5 billion, despite total revenues increasing by 11 percent to $67.18 billion from $60.5 billion. Higher revenues were driven by Evernorth Health Services and include growth of existing client relationships and strong specialty pharmacy growth. In a statement, The Cigna Group (NYSE:CI) Chairman and CEO David Cordani said that the company's performance in the second quarter reflects the disciplined execution and the strength of the group's business mix. Photo by martha-dominguez-de-gouveia on Unsplash 'Listening, adapting, and innovating to meet the evolving needs of our patients, customers, and clients enables us to deliver meaningful value,' he noted. While we acknowledge the potential of CI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .

The Cigna Group (CI): Oversold on the Charts, Solid in the Fundamentals
The Cigna Group (CI): Oversold on the Charts, Solid in the Fundamentals

Yahoo

time27-07-2025

  • Business
  • Yahoo

The Cigna Group (CI): Oversold on the Charts, Solid in the Fundamentals

The Cigna Group (NYSE:CI) is included among the 10 Oversold Dividend Stocks to Buy According to Hedge Funds. A healthcare team discussing strategies for patient advocacy programs. The company reported solid earnings in the first quarter of 2025, with revenues of $65.4 billion, up 14.3% growth from the same period last year. The revenue also beat analysts' estimates by $5.07 billion. The company reported shareholders' net income of $1.3 billion, which translates to $4.85 per share. Adjusted income from operations for the same period was $1.8 billion, or $6.74 per share. The Cigna Group (NYSE:CI) reported that it is developing a more sustainable healthcare model by effectively fulfilling its commitments and initiatives aimed at enhancing transparency and providing better support for customers and patients. Its strong performance in the first quarter, along with an upgraded full-year earnings outlook, highlights the robustness of its Evernorth Health Services and Cigna Healthcare growth platforms amid a dynamic market environment. In addition to this, The Cigna Group (NYSE:CI) is also a prominent dividend payer. The company currently pays a quarterly dividend of $1.51 per share, having raised it by 7.9% in January. Through this increase, CI stretched its dividend growth streak to five years. The stock has a dividend yield of 2.04%, as of July 25. While we acknowledge the potential of CI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Evernorth appoints Prashanti Bodugum as Head of Hyderabad innovation hub
Evernorth appoints Prashanti Bodugum as Head of Hyderabad innovation hub

Time of India

time03-07-2025

  • Business
  • Time of India

Evernorth appoints Prashanti Bodugum as Head of Hyderabad innovation hub

Evernorth Health Services, the pharmacy, care, and benefits solutions division of The Cigna Group , proudly announces the appointment of Prashanti Reddy Bodugum as Head of Evernorth India (Hyderabad Innovation Hub ), effective 30 June 2025. With over 26 years of global leadership experience, Prashanti brings deep expertise in leading large-scale digital transformations, building high-performing tech teams, and delivering results across healthcare, retail, and financial services. She most recently served as Vice President , GCC, at Walmart Global Tech and has held senior roles at Optum, Capgemini, and GE. ' It's an honor to join Evernorth during such a transformative phase ,' said Prashanti. ' The Hyderabad Innova- tion Hub is already a powerhouse of talent and innovation. I'm excited to build on that foundation, nurture future leaders, and accelerate our impact for customers and all those we serve .' ' Prashanti's entrepreneurial mindset and proven track record in scaling global capability centers make her the ideal leader for this next chapter. Her leadership will be instrumental in driving innovation and delivery so that we can better serve customers, clients and stakeholders,' said Neel Chopdekar , SVP and COO of Information Technology at Evernorth. A passionate advocate for women in technology, Prashanti has spearheaded inclusive programs like ReSpark, CodeHers, and iLead, driving equitable career advancement for women in senior tech roles. Among her many achievements, Prashanti led the transformation of Walmart's Chennai center into an exponential tech value engine, delivering digital, analytics, and automation solutions for Fortune 500 enterprises. Ashok Venkatachalam, who has led and successfully grown the Hyderabad Innovation Hub over the past 15 months, will assume a new role within Evernorth.

Cigna (NYSE:CI) Reports Bullish Q1
Cigna (NYSE:CI) Reports Bullish Q1

Yahoo

time02-05-2025

  • Business
  • Yahoo

Cigna (NYSE:CI) Reports Bullish Q1

Health insurance company Cigna (NYSE:CI) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 14.4% year on year to $65.5 billion. Its non-GAAP profit of $6.74 per share was 6.2% above analysts' consensus estimates. Is now the time to buy Cigna? Find out in our full research report. Revenue: $65.5 billion vs analyst estimates of $60.42 billion (14.4% year-on-year growth, 8.4% beat) Adjusted EPS: $6.74 vs analyst estimates of $6.35 (6.2% beat) Operating Margin: 2.8%, down from 3.9% in the same quarter last year Customers: 18.04 million, up from 17.5 million in the previous quarter Market Capitalization: $90.87 billion "We are building a more sustainable health care model by successfully delivering on our series of commitments and actions to improve transparency and support for our customers and patients," said David M. Cordani, chairman and CEO of The Cigna Group. With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE:CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Cigna's sales grew at a decent 12% compounded annual growth rate over the last five years. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Cigna's annualized revenue growth of 18.1% over the last two years is above its five-year trend, suggesting its demand recently accelerated. We can better understand the company's revenue dynamics by analyzing its number of customers, which reached 18.04 million in the latest quarter. Over the last two years, Cigna's customer base averaged 3.3% year-on-year growth. Because this number is lower than its revenue growth, we can see the average customer spent more money each year on the company's products and services. This quarter, Cigna reported year-on-year revenue growth of 14.4%, and its $65.5 billion of revenue exceeded Wall Street's estimates by 8.4%. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Cigna was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.3% was weak for a healthcare business. Analyzing the trend in its profitability, Cigna's operating margin decreased by 1.4 percentage points over the last five years. A silver lining is that on a two-year basis, its margin has stabilized. We like Cigna and hope it can right the ship. In Q1, Cigna generated an operating profit margin of 2.8%, down 1.1 percentage points year on year. This reduction is quite minuscule and indicates the company's overall cost structure has been relatively stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Cigna's EPS grew at a remarkable 9.1% compounded annual growth rate over the last five years. However, this performance was lower than its 12% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes. We can take a deeper look into Cigna's earnings quality to better understand the drivers of its performance. As we mentioned earlier, Cigna's operating margin declined by 1.4 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q1, Cigna reported EPS at $6.74, up from $6.47 in the same quarter last year. This print beat analysts' estimates by 6.2%. Over the next 12 months, Wall Street expects Cigna's full-year EPS of $27.61 to grow 11.1%. We were impressed by how significantly Cigna blew past analysts' customer base expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a solid print. The stock traded up 1.5% to $340 immediately after reporting. Sure, Cigna had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.

Cigna Profits Hit $1.3 Billion As Health Insurer Gets Handle On Costs
Cigna Profits Hit $1.3 Billion As Health Insurer Gets Handle On Costs

Forbes

time02-05-2025

  • Business
  • Forbes

Cigna Profits Hit $1.3 Billion As Health Insurer Gets Handle On Costs

The Cigna Group swung to a first quarter profit of $1.3 billion as the health insurer begins to gain control of rising medical costs and its Evernorth business continues to perform well. Cigna, which includes Evernorth Health Services and one of the nation's largest pharmacy benefit management companies, said first quarter net income was $1.3 billion, or $4.85 per share, compared with a net loss of $277 million, or 97 cents per share, in the first quarter of last year. Total revenues for the first quarter jumped 14% to $65.5 billion 'reflecting growth of existing client relationships and strong specialty pharmacy growth in Evernorth Health Services,' Cigna said in its first quarter earnings report released Friday. The potential for future growth and a health insurance business with potentially lower costs thanks to a divestiture of Medicare-related businesses figured in Cigna's newly disclosed financial outlook released Friday showing more promising earnings for the rest of 2025. Like other health insurers, Cigna has been grappling with rising medical costs and the first quarter was no different. Cigna's medical cost ratio (MCR), which is the percentage of premium revenue that goes toward medical costs, was 82.2% for the first quarter of 2025 compared to 79.9% for first quarter of last year. 'The increase for the first quarter was primarily driven by expected higher stop loss medical costs,' Cigna said in its report. Meanwhile, Cigna said its sale of its Medicare health benefits businesses to Health Care Service Corp. in late March 'closed later than the company's financial planning assumptions, increasing the first quarter Cigna Healthcare MCR as the Medicare businesses operate at a higher MCR compared to the rest of the portfolio.' Looking ahead, however, Medicare costs won't be an issue for Cigna like its rivals that operate Medicare Advantage plans for seniors. Operators of Medicare Advantage have been hit hard in the last year with higher costs that have spilled over on to their stock prices. Medicare Advantage plans contract with the federal government to provide extra benefits and services to seniors, such as disease management and nurse help hotlines with some also offering vision, dental care and wellness programs. During the first quarter, Cigna closed the sale of its Medicare health benefits businesses and a medical care provider services operation for $3.3 billion to Health Care Service Corp., the parent of five Blue Cross and Blue Shield health insurance plans. Health Care Service, which operates Blue Cross and Blue Shield health plans in five states, now owns Cigna's Medicare Advantage plans, Cigna supplemental benefits, Medicare Part D drug benefits and CareAllies, a business that helps medical care providers with various administrative services and contracting. Cigna's focus is now on its businesses that include commercial health plans, administration of health benefits for employers and its Evernorth health services business that includes the large pharmacy benefit manager, Express Scripts. 'We are building a more sustainable health care model by successfully delivering on our series of commitments and actions to improve transparency and support for our customers and patients,' said Cigna chairman and chief executive officer David M. Cordani. 'Our strong first quarter results and increase in outlook for full-year earnings reflects the strength of our Evernorth Health Services and Cigna Healthcare growth platforms in a dynamic environment.' Cigna said its outlook for full year 2025 consolidated adjusted income from operations is $29.60 per share.

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