Shares of Cigna Corp.
CI,
rose 1.1% in premarket trading on Friday, after closing the previous session at a three-and-a-half-month low, after the health insurer reported better-than-expected fourth-quarter profit, while revenue increased slightly. Net income increased to $1.17 billion, or $3.83 a share, from $1.12 billion, or $3.39 a share, in the same period last year. Excluding non-recurring items, adjusted earnings per share were $4.96, well above FactSet consensus of $4.86. Revenue inched 0.1% to $45.75 billion, just below the FactSet consensus of $45.88 billion. Total customer relationships increased 2.2% to 189.7 million, including pharmacy customers down 1.6% to 105.6 million, medical customers up 5.4% to 18.0 million, and Medicare Part D customers fell 9.7% to 2.9 million. For 2023, the company expects adjusted EPS to be “at least” $24.60, compared with the current FactSet consensus of $24.79. Shares fell 3.8% on Thursday to their lowest close since Oct. 21, after Medicare Advantage offers lower rates for 2024. It has lost 7.0% in the past three months, while the Health Care Select Sector SPDR exchange-traded fund
XLV,
rose 2.4% and the S&P 500
SPX,
increased by 12.4%.
