UPDATE: Cigna Posts Upbeat Q3 Earnings, Lifts Forecast

Cigna

reported better-than-expected earnings for the third quarter and raised its earnings forecast for the full year. The Bloomfield, Connecticut-based company posted a quarterly net profit of $534 million, or $2.01 per share, versus a year-ago profit of $553 million, or $1.95 per share. Excluding certain items, the company earned $1.95 per share. Its revenue rose to $8.8 billion from $8.1 billion. However, analysts were estimating earnings of $1.82 per share on revenue of $8.66 billion. Premiums and fees rose around 7%at Global Health Care segment, while premiums and fees climbed 17% at Global Supplemental Benefits segment. Premiums and fees gained 7% at Group Disability and Life segment. At September 30, 2014, cash and short term investments at the parent company were around $425 million, versus around $760 million at December 31, 2013. During the quarter, Cigna repurchased around 2.8 million shares of stock for approximately $250 million. “Our third quarter results demonstrate the value we continue to deliver for Cigna's customers and clients through our focus on personalized service, innovative solutions and quality clinical outcomes,” said David M. Cordani, President and Chief Executive Officer. For the full year, Cigna now projects earnings of $7.25 to $7.45 per share, versus its earlier forecast of $7.20 to $7.40 per share. Cigna shares rose 1.53% to close at $94.00 yesterday.