Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$309.41Last close (Nov 1, 2023)
Post-Earnings Price$306.31Open (Nov 2, 2023)
Price Change
$-3.10(-1.00%)
- Cigna Healthcare continues to deliver strong customer growth, increasing its medical customers by at least 1.6 million in 2023, representing the third consecutive quarter of increased customer growth guidance. This growth reflects strong momentum across all businesses, ahead of expectations.
- Strategic relationships, such as the Centene contract, are expected to drive significant revenue and earnings growth in 2024. The $200 million investment made in 2023 to onboard Centene will transition to profitability in 2024, contributing to Cigna's adjusted EPS outlook of at least $28.
- Cigna is well-positioned to capitalize on biosimilar opportunities and innovative healthcare solutions like InCircle Rx, which addresses the growing demand for GLP-1 drugs. The adoption of biosimilars, notably for HUMIRA, is expected to continue ramping up, driving savings and growth for the company in 2024 and beyond. ,
- Key Bear Points for $CI based on Q&A Section:*
- The company expects individual exchange margins to remain below target in 2023, primarily due to increased risk adjustment payable in states like Texas and Georgia. They anticipate having fewer customers in the individual exchange products in 2024 due to substantial price increases, which may impact overall growth. ,
- Medicare Advantage margins are below the long-term target range of 4% to 5%, driven by elevated outpatient and professional services utilization. The company expects these margins to remain below target in 2024, indicating ongoing profitability challenges in this segment. ,