Cigna Corp. on Thursday reported third-quarter earnings that beat analysts' expectations, largey owing to a growing customer base.
Net income for the three months ending June 30 was $505 million, or $1.76 per share, compared with $380 million, or $1.31 per share, during the same period last year. Analysts polled by Thomson Reuters were expecting $1.60 on average.
Revenues were up to $7.98 billion from $7.42 billion for the quarter. Adjusted income from operations was $512 million, up from $434 million.
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Cigna's customer base in health insurance grew from 13.4 million to 13.8 million people, year over year. Cigna also had growth in its behavioral care membership, from 21.2 million to 22.39 million people. Dental plan customers increased from 11.25 million to 12 million.
The company had a slight drop in customers 65 and older who bought stand-alone, prescription drug plans — known as Medicare Part D — from 1.26 million to 1.2 million.
Goldman Sachs analyst Matthew Borsch wrote in a note to investors that the upside of earnings was evenly distributed across segments: global health care, life and disability insurance, and supplemental benefits coverage.
"Overall, results look quite solid with no real surprises as investors by now appear to fully expect upside from managed care names," Borsch wrote.
Since the start of the year through Aug. 1, Cigna has repurchased about 7.2 million shares of company stock for about $500 million.
Cigna increased its outlook for the year, saying consolidated adjusted income from operations will be in the range of $1.8 billion to $1.9 billion, or $6.25 to $6.65 per share.
Cigna is headquartered in Bloomfield and employs about 4,100 in Connecticut.
Shares of the company's stock were down 56 cents to $77.27 on Thursday.