Cigna Group (NYSE:CI) shares rose by nearly 3% in the early trading session today after the insurance and health services major delivered robust first-quarter results and hiked its earnings outlook.
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Cigna’s Strong Q1 Numbers
Cigna’s Q1 top line surged by 23.2% year-over-year to $57.3 billion. The figure outpaced expectations by $710 million. In sync, its EPS of $6.47 exceeded estimates by $0.25.
The quarter was marked by growth across Cigna’s portfolio of businesses. Its total number of customers rose to 186.7 million from 164.4 million in the prior quarter on the back of continued expansion in customer relationships. The company’s Evernorth Health business clocked revenue of $46.2 billion, a year-over-year growth of 28%. This growth was driven by multiple large-client wins and an expansion of existing relationships in the unit. Revenues in the Cigna Healthcare business, on the other hand, rose by a tepid 4% to $13.28 billion.
For the full year, Cigna expects revenue of at least $235 billion. The company anticipates adjusted income from operations per share of at least $28.40. This is an increase of $0.15+ per share over its prior projection.
What Is the Price Prediction for CI Stock?
Today’s price gains further add to the nearly 45% rally in Cigna’s share price over the past year. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average CI price target of $389.71. However, analysts’ views on Cigna stock could see a revision following today’s earnings report.
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