Cigna Slides as Profit, Outlook Disappoint

Friday, 07 Feb 2014 05:48 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Cigna shares slumped Friday after the health insurer reported a weaker-than-expected fourth-quarter profit and outlook for 2014.

Revenue from premiums and fees rose 7 percent to $7.28 billion, but Cigna also spent more money on medical care for its Medicare Advantage members. Medicare Advantage plans are privately run versions of the government's Medicare program. A $40 million charge from a cost-cutting plan also weighed on profit.

The company said its net income fell 11 percent, to $361 million, or $1.29 per share, from $406 million, or $1.41 per share, in the fourth quarter of 2012.

Excluding one-time charges, earnings fell to $1.39 per share from $1.57 per share. FactSet says analysts expected net income of $1.48 per share.

Revenue grew 7 percent, to $8.15 billion from $7.62 billion. Wall Street predicted $8.06 billion.

For all of 2013, net income fell 9 percent to $1.48 billion. Excluding one-time items the company earned $6.79 per share. Revenue rose 11 percent to $32.38 billion.

In the new year Cigna said it expects to earn between $6.80 and $7.20 per share. Analysts are forecasting net income of $7.29 per share on average.

Shares of the Bloomfield, Conn.-based Cigna Corp. declined $7.13, or 8.4 percent, to $78.24 in midday trading.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved