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Cigna Group Q4'24 Earnings Highlights:

$CI (+4.12%)


๐Ÿ”น EPS: $6.64 (Est. $7.78) ๐Ÿ”ด; DOWN -2% YoY

๐Ÿ”น Revenue: $65.65B (Est. $62.91B) ๐ŸŸข; UP +28% YoY

๐Ÿ”น Net Income: $1.42B (Est. $2.18B); UP +38% YoY

๐Ÿ”น SG&A Expense Ratio: 5.9% (Prev. 7.9%) ๐ŸŸข


FY25 Outlook:

๐Ÿ”น EPS: At least $29.50 (Est. $31.30) ๐Ÿ”ด

๐Ÿ”น Revenue: At least $252.0B (Est. $251.2B) ๐ŸŸก

๐Ÿ”น Adjusted Income from Operations: At least $7.9B

๐Ÿ”น Adjusted SG&A Expense Ratio: ~5.4%

๐Ÿ”น Operating Cash Flow: ~$10.0B

๐Ÿ”น Dividend Per Share: Increased 8% to $1.51 per share


Q4 Segment Performance:

Evernorth Health Services:

๐Ÿ”น Revenue: $53.74B; UP +33% YoY

๐Ÿ”น Pharmacy Benefit Services Revenue: $30.27B; UP +47% YoY

๐Ÿ”น Specialty & Care Services Revenue: $23.47B; UP +18% YoY

๐Ÿ”น Adjusted Income from Operations (Pre-Tax): $2.15B; UP +14% YoY

๐Ÿ”ธ Growth driven by client wins, strong specialty volume, and Humira biosimilar adoption.


Cigna Healthcare:

๐Ÿ”น Revenue: $13.33B (Est. $13.01B) ๐ŸŸข; UP +3% YoY

๐Ÿ”น Adjusted Income from Operations (Pre-Tax): $511M (Prev. $969M) ๐Ÿ”ด; DOWN -47% YoY

๐Ÿ”น Medical Care Ratio (MCR): 87.9% (Prev. 82.2%) ๐Ÿ”ด

๐Ÿ”น Total Medical Customers: 19.15M (Prev. 19.78M) ๐Ÿ”ด

๐Ÿ”ธ Decline driven by higher stop-loss medical costs, partially offset by premium rate increases.


Segment Projections:

๐Ÿ”น Evernorth Adjusted Income from Operations (Pre-Tax): At least $7.2B

๐Ÿ”น Cigna Healthcare Adjusted Income from Operations (Pre-Tax): At least $4.1B

๐Ÿ”น Cigna Healthcare MCR: 83.2%-84.2%

๐Ÿ”น Total Medical Customers: ~18.1M


Key Business Highlights:

๐Ÿ”ธ Cigna is divesting its Medicare businesses to HCSC, expected to close in Q1 FY25.

๐Ÿ”ธ Evernorth continues to expand specialty and care services with strong organic growth.

๐Ÿ”ธ Share repurchase authorization increased by $6B, bringing the total to $10.3B.

๐Ÿ”ธ Cigna is implementing corrective actions to address stop-loss cost pressures.

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