Cigna Stock Falls After Q2 Report - Here's Why
Portfolio Pulse from Vandana Singh
Cigna Corporation reported Q2 FY23 sales of $48.62 billion, up 7% Y/Y, beating the consensus of $47.13 billion. The company's medical cost ratio was 81.2%, slightly higher than 80.7% a year ago. Total premiums rose 6% to $11.04 billion and total medical customers grew 8% to 19.5 million. Revenue from Cigna's Evernorth unit rose nearly 10% to $38.21 billion. The adjusted EPS of $6.13, down from $6.20 a year ago, came above the Wall Street estimate of $5.98. Despite the positive report, Cigna shares are down 4.07% at $287.23.
August 04, 2023 | 1:48 pm
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Cigna's Q2 FY23 sales beat consensus, but shares fell 4.07%. The company's medical cost ratio was slightly higher than last year, which could be a concern for investors.
Despite beating sales estimates, Cigna's stock fell, possibly due to concerns about the slightly higher medical cost ratio. This ratio indicates the company's spending on claims as a percentage of premiums, and a higher ratio could mean lower profitability.
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IMPORTANCE 80
RELEVANCE 100