Driven by its Health Services and Integrated Medical segments, Cigna Corp.'s second-quarter adjusted income from operations rose to $1.64 billion, or $4.30 per share, from $955 million, or $3.89 per share, from a year ago.
The S&P Global Market Intelligence consensus normalized EPS estimate for the latest quarter was $3.74.
The company said the result reflected strong earnings contributions led by the health services and integrated medical segments. Second-quarter adjusted income from operations also included a $45 million benefit from the resolution of a tax matter.
Shareholders' net income reached $1.41 billion, or $3.70 per share, versus $806 million, or $3.29 per share, in the prior-year period.
Total unadjusted revenues more than tripled to $38.82 billion from $11.48 billion.
Its medical care ratio — medical costs as a percentage of premiums for all of its U.S. commercial risk products — was 81.6% in the second quarter, slightly above the upper end of its full-year target range of 80.5% to 81.5%. Cigna said the year-over-year increase was due in part to the inclusion of Express Scripts Medicare Part D business and the pricing effect of a health insurance tax suspension in the U.S.
The company raised its 2019 outlook. It now anticipates adjusted income from operations in the range of $6.34 billion to $6.46 billion, or $16.60 per share to $16.90 per share, compared with the outlook it previously provided of $6.24 billion to $6.40 billion, or $16.25 per share to $16.65 per share.
Health services' projected a 2020 retention rate for 2019's selling season for pharmacy services to be in the range of 97% to 98%, an increase of 50 basis points from the midpoint of Cigna's previous expectations. Health Services is expected to organically grow its adjusted pharmacy scripts by between 25 million and 35 million in 2020.
The S&P Global Market Intelligence consensus normalized EPS estimate for 2019 is $16.55.