Cigna (NYSE:CI) Beats Revenue Forecasts in Q4

Key Highlights:

* Revenue surged 28.4% YoY to $65.65 billion, surpassing analyst estimates.
* Adjusted EPS of $6.64 fell short of expectations by 15.1% at $7.82.
* Adjusted EBITDA reached $2.7 billion, below analyst estimates of $3.44 billion.
* Management anticipates revenue of $252 billion in FY2025, in line with analyst expectations.

Overview:

Cigna, a leading health insurance provider, offers comprehensive healthcare solutions for corporate clients and individuals. The company's strong base of 17.5 million customers reflects its customer-centric approach.

Financial Performance:

Cigna has consistently grown its revenue, achieving an annualized growth rate of 10% over the past five years. Recent innovations have contributed to an accelerated growth rate of 17% over the last two years. The company's cost structure, however, has impacted its profitability, resulting in an average adjusted operating margin of 5.6%.

Key Metrics:

* Revenue: $65.65 billion vs. $62.79 billion analyst estimates (28.4% YoY growth, 4.5% beat).
* Adjusted EPS: $6.64 vs. $7.82 analyst expectations (15.1% miss).
* Adjusted EBITDA: $2.7 billion vs. $3.44 billion analyst estimates (4.1% margin, 21.7% miss).
* Revenue guidance: $252 billion for FY2025 (2% growth, in line with analyst expectations).
* Operating Margin: 3.3%, similar to Q4 2023.
* Free Cash Flow Margin: 7.9%, up from 2.2% in Q4 2023.
* Customers: 17.5 million, increasing from 17.41 million in Q3 2024.

Outlook:

While higher medical costs impacted earnings in Q4, Cigna is addressing these challenges and implementing strategies for long-term growth. Analysts anticipate a modest 1.6% revenue growth over the next 12 months, indicating potential headwinds for its products and services. However, the company's strong financial position and focus on innovation provide a solid foundation for future success.