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Cigna ups '16 outlook after revenue growth, favorable medical costs boost Q1 results

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Cigna ups '16 outlook after revenue growth, favorable medical costs boost Q1 results

posted first-quarteradjusted income from operations of $601 million, or $2.32 per share, up from$513 million, or $1.96 per share, for the first quarter of 2015.

The year-over-yeargrowth was driven by revenue growth, favorable medical and operating costs inthe global health care segment and a $23 million after-tax impact related tothe adoption of a new accounting standard for corporate income taxes fromstock-based compensation programs.

TheS&P Capital IQ consensus normalized EPS estimate for the quarter was $2.15.

Theinsurer reported shareholders' net income of $519 million, or $2.00 per share,versus $533 million, or $2.04 per share, in the year-ago quarter. These resultsincluded a special item charge of $36 million after-tax, or 14 cents per share,for transaction costs related to Cigna's proposed combination with

Consolidatedoperating revenues grew year over year to $9.92 billion from $9.39 billion. Netrealized investment losses totaled $32 million, compared to gains of $73million.

Theinsurer ended the first quarter with 15,129,000 global medical customers, comparedto 14,999,000 at Dec. 31, 2015, and 14,654,000 at March 31, 2015.

Cignaalso raised its 2016 outlook for consolidated adjusted income from operationsto a range of $8.95 per share to $9.35 per share from the range of $8.85 per share to$9.25 per share. The outlook excludes the impact of prior-year reservedevelopment and the potential effects of future capital deployment.

TheS&P Capital IQ consensus normalized EPS estimate for the full year is $9.20.

Theinsurer expects consolidated revenue growth to be in the mid-single-digitpercentage range, consolidated adjusted income from operations growth to be inthe high-single-digit percentage range and global medical customer growth to bein the low-single-digit percentage range.