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Cigna Group Q4'24 Earnings Highlights:

$CI (+4,12 %)


🔹 EPS: $6.64 (Est. $7.78) 🔴; DOWN -2% YoY

🔹 Revenue: $65.65B (Est. $62.91B) 🟢; UP +28% YoY

🔹 Net Income: $1.42B (Est. $2.18B); UP +38% YoY

🔹 SG&A Expense Ratio: 5.9% (Prev. 7.9%) 🟢


FY25 Outlook:

🔹 EPS: At least $29.50 (Est. $31.30) 🔴

🔹 Revenue: At least $252.0B (Est. $251.2B) 🟡

🔹 Adjusted Income from Operations: At least $7.9B

🔹 Adjusted SG&A Expense Ratio: ~5.4%

🔹 Operating Cash Flow: ~$10.0B

🔹 Dividend Per Share: Increased 8% to $1.51 per share


Q4 Segment Performance:

Evernorth Health Services:

🔹 Revenue: $53.74B; UP +33% YoY

🔹 Pharmacy Benefit Services Revenue: $30.27B; UP +47% YoY

🔹 Specialty & Care Services Revenue: $23.47B; UP +18% YoY

🔹 Adjusted Income from Operations (Pre-Tax): $2.15B; UP +14% YoY

🔸 Growth driven by client wins, strong specialty volume, and Humira biosimilar adoption.


Cigna Healthcare:

🔹 Revenue: $13.33B (Est. $13.01B) 🟢; UP +3% YoY

🔹 Adjusted Income from Operations (Pre-Tax): $511M (Prev. $969M) 🔴; DOWN -47% YoY

🔹 Medical Care Ratio (MCR): 87.9% (Prev. 82.2%) 🔴

🔹 Total Medical Customers: 19.15M (Prev. 19.78M) 🔴

🔸 Decline driven by higher stop-loss medical costs, partially offset by premium rate increases.


Segment Projections:

🔹 Evernorth Adjusted Income from Operations (Pre-Tax): At least $7.2B

🔹 Cigna Healthcare Adjusted Income from Operations (Pre-Tax): At least $4.1B

🔹 Cigna Healthcare MCR: 83.2%-84.2%

🔹 Total Medical Customers: ~18.1M


Key Business Highlights:

🔸 Cigna is divesting its Medicare businesses to HCSC, expected to close in Q1 FY25.

🔸 Evernorth continues to expand specialty and care services with strong organic growth.

🔸 Share repurchase authorization increased by $6B, bringing the total to $10.3B.

🔸 Cigna is implementing corrective actions to address stop-loss cost pressures.

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