Summary
Cigna Group (CI) reported a solid performance for the quarter ended June 30, 2021, with total revenues increasing by 10% year-over-year to $43.1 billion. This growth was primarily driven by a 13% increase in pharmacy revenues, largely attributable to the Evernorth segment, which saw strong business and customer growth. Despite an increase in medical costs and other benefit expenses due to the resumption of medical care and COVID-19 related costs, the company managed to control selling, general, and administrative expenses, which decreased by 12%. Shareholders' net income for the quarter was $1.47 billion, a decrease from the prior year, impacted by higher COVID-19 related costs and the absence of certain favorable tax benefits. For the six-month period, total revenues grew 8% to $84.1 billion. While shareholders' net income decreased by 10%, the company's adjusted income from operations saw a more moderate decline of 11%, highlighting the impact of one-time items and the sale of the Group Disability and Life business. The company completed the acquisition of MDLIVE, a virtual care platform, to further enhance its Evernorth segment's offerings. Cigna continued to prioritize capital return to shareholders through share repurchases and dividends, demonstrating a commitment to shareholder value while navigating a dynamic healthcare landscape.
Financial Highlights
48 data points| Revenue | $43.13B |
| Cost of Revenue | $29.00B |
| Gross Profit | $14.13B |
| SG&A Expenses | $3.00B |
| Operating Income | $2.15B |
| Interest Expense | $311.00M |
| Net Income | $1.47B |
| EPS (Basic) | $4.30 |
| EPS (Diluted) | $4.25 |
| Shares Outstanding (Diluted) | 344.93M |
Key Highlights
- 1Total revenues increased by 10% year-over-year to $43.1 billion for the three months ended June 30, 2021, driven by strong pharmacy revenue growth.
- 2Evernorth segment demonstrated robust growth, with adjusted revenues up 14% and pre-tax adjusted income from operations increasing by 13%, driven by effective supply chain management and growth in specialty pharmacy services.
- 3U.S. Medical segment experienced a decrease in pre-tax adjusted income from operations by 33% due to net unfavorable COVID-19 related impacts, including the resumption of medical care and increased direct costs for testing and vaccines.
- 4Cigna completed the acquisition of MDLIVE, a virtual care platform, for $2.0 billion to enhance its Evernorth segment's capabilities.
- 5Shareholders' net income decreased by 16% to $1.47 billion for the quarter, impacted by increased medical costs and the absence of favorable tax items from the prior year.
- 6The company repurchased approximately $3.7 billion of its common stock during the first six months of 2021, alongside dividend payments, signaling a commitment to returning capital to shareholders.
- 7Despite a slight decrease in total medical customers, Cigna saw growth in its individual and Medicare Advantage businesses within the U.S. Medical segment.