Health insurer CIGNA Corporation (CI) on Thursday posted a 10% decline in first quarter profits, hurt by one-time acquisition costs, but lifted its full-year earnings outlook.
The Bloomfield, CT-based company reported first quarter net income of $371 million, or $1.28 per share, compared with $413 million, or $1.51 per share, in the year-ago period. Excluding special items, adjusted profit was $1.24 per share.
Revenue surged 25% from last year to $6.79 billion.
On average, Wall Street analysts expected a higher profit of $1.30 per share, albeit on lower revenue of $6.71 billion.
Looking ahead, CI boosted its full-year earnings outlook to a range of $5.20 to $5.55 per share, up from a prior forecast of $5 to $5.40 per share.
CIGNA shares were inactive in premarket trading Thursday.
The Bottom Line
Shares of Cigna (CI) have a .09% dividend yield, based on last night’s closing stock price of $46.55. The stock has technical support in the $42-$44 price area. If the shares can firm up, we see overhead resistance around the $50-$51 price levels.
CIGNA Corporation (CI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.