Cigna’s stock edges up after profit and revenue beats, in line outlook

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Shares of Cigna Corp. edged up 0.2% in premarket trading Thursday, after the health insurer reported third-quarter profit and revenue that beat expectations, while providing an in-line full-year outlook, boosted by the return of medical utilization to more typical levels and COVID-19-related impacts. Net income rose to $1.39 billion, or $3.78 a share, from $1.35 billion, or $3.57 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share fell to $4.41 from $4.54, but was above the FactSet consensus of $4.24. Total revenue increased 6.2% to $40.96 billion, beating the FactSet consensus of $39.15 billion. Pharmacy services revenue grew 7.0% to $27.80 billion, above the FactSet consensus of $26.40 billion, and premiums rose 7.5% to $10.68 billion to top expectations of $10.38 billion. For 2020, the company expects adjusted EPS of $18.30 to $18.60, surrounding the FactSet consensus of $18.55. The stock has tacked on 3.0% year to date through Wednesday, while the SPDR Consumer Discretionary Select Sector ETF has edged up 7.7% and the S&P 500 has gained 6.6%.
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