Bloomfield, Connecticut-based The Cigna Group (CI) provides insurance and related products and services. Valued at a market cap of $81 billion, the company offers a broad range of services, including medical, pharmacy, behavioral health, dental, and supplemental benefits, along with health and wellness solutions. It is scheduled to announce its fiscal Q2 earnings for 2025 before the market opens on Thursday, Jul. 31.
Before this event, analysts project this healthcare insurance provider to report a profit of $7.14 per share, up 6.3% from $6.72 per share in the year-ago quarter. The company has surpassed Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $6.74 per share in the previous quarter topped the consensus estimates by 5.5%.
For the full year, analysts expect CI to report EPS of $29.68, up 8.6% from $27.33 in fiscal 2024. Its EPS is expected to further grow 11.4% year-over-year to $33.05 in fiscal 2026.
Shares of CI have declined 9.1% over the past 52 weeks, lagging behind both the S&P 500 Index’s ($SPX) 12.1% uptick and the Health Care Select Sector SPDR Fund’s (XLV) 8.3% loss over the same time frame.
On May 2, shares of CI dipped marginally after its Q1 earnings release, despite delivering a better-than-expected performance. The company’s adjusted revenue grew 14.3% year-over-year to $65.5 billion, surpassing the consensus estimates by 7.7%. An increase in existing client relationships and strong specialty pharmacy growth in Evernorth Health Services led to its robust top-line rise. Moreover, its adjusted EPS of $6.74 improved 4.2% from the year-ago quarter and came in 5.5% above the analyst expectations. Looking ahead, CI raised its fiscal 2025 adjusted income from operations guidance to $29.60 per share.
Wall Street analysts are highly optimistic about CI’s stock, with a “Strong Buy” rating overall. Among 22 analysts covering the stock, 16 recommend “Strong Buy,” two indicate “Moderate Buy,” and four advise “Hold.” The mean price target for CI is $379.38, which indicates a 25.1% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
