CIGNA's Third Quarter Earnings Report

CIGNA (NYSE:CI) announced its results for the most recent quarter on November 1, 2012. Cigna's subsidiaries provide health care and related benefits, including health care products and services, group disability, life, and accident insurance.

Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Earnings: Quality Means Everything

The Numbers: CIGNA managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported adjusted net income of $1.69 per share versus the $1.43 per share estimate and revenues of $7.36 billion versus the $6.71 billion estimate. Revenue climbed 31.2% from the same period last year. CIGNA's profit for the third quarter was $466 million. This is 154.6% higher than the year-ago quarter.



Management Quote: "Our differentiated approach to understanding and helping our global clients and customers as well as partnering with physicians continues to deliver real value. Our third quarter 2012 results were strong, driven by consistent and disciplined execution of our strategy," said David M. Cordani, President and Chief Executive Officer. "We continue to make strategic investments to position Cigna to deliver long-term value for the benefit of our customers and shareholders."



Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.38 a share to $1.45 over the last 90 days. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. Over the past three months, the average estimate for the fiscal year has climbed from $5.42 per to share to $5.52.