=Cigna (CI) reported earnings on Fri 1 Feb 2019 (b/o)

BLOOMFIELD, Conn. (AP) _ Cigna Corp. (CI) on Friday reported fourth-quarter earnings of $144 million.

The Bloomfield, Connecticut-based company said it had profit of 55 cents per share. Earnings, adjusted for non-recurring costs, came to $2.46 per share.

Cigna Corp posted a better-than-expected quarterly profit, but forecast revenue and earnings below Wall Street estimates for the first full year after the health insurer closed its acquisition of pharmacy benefits manager Express Scripts.

Shares in the company dipped 5.5 percent to $188.90 in early trade, with investors fretting over the aftermath of proposals from the U.S. government to end rebates which help underpin pharmacy benefits businesses.

Ending the decades-old system would be a blow to Express Scripts and rivals including UnitedHealth's Optum and CVS Health which act as middlemen in the pharmaceuticals supply chain.

Express Scripts on Thursday said it was evaluating the proposed rule, but noted rebates help keep premiums low for Medicare beneficiaries. Cigna executives are due to hold a conference call with analysts at 8:30 a.m. ET.

Shares of both CVS and UnitedHealth were also trading lower on Friday.

"We expect stock to be down today from the HHS proposal released last night," Evercore ISI's Michael Newshel wrote in a note. "(It has) the intention of pushing the industry away from drug rebates."

Cigna forecast 2019 adjusted income from operations in the range of $16.00 to $16.50 per share. Analysts were expecting $16.74 per share, according to Refinitiv IBES.

The earnings forecast is at the minimum threshold for expectations, Newshel said, adding that Cigna is probably being conservative.

The health insurer also said it expected 2019 adjusted revenue of between $131.50 billion and $133.50 billion, lower than the consensus estimate of $133.60 billion.

Cigna reported an 80.9 percent quarterly medical care ratio - the amount it spends on medical claims compared to income from premiums. This beat consensus estimates of 81.6 percent according to Evercore ISI.

Total medical customers rose 3.6 percent to 16.96 million in the fourth quarter from a year earlier.

Cigna's net income fell to $144 million, or 55 cents per share, in the quarter ended Dec. 31, from $266 million, or $1.07 per share, a year earlier.

Excluding items, Cigna earned $2.46 per share, as the company reigned in medical costs in the quarter, which recorded about 11 days of earnings as a combined company with Express Scripts. Analysts on average had expected $2.42 per share.

Cigna's adjusted revenue rose to $13.75 billion, beating estimates of $11.59 billion. 

=Express Scripts (ESRX) to be acquired by Cigna (CI) for $48.75/share

• In 2015, Cigna (NYSE:CI) agreed to combine with Anthem (NYSE:ANTM), in a deal that was scuttled by regulators, while late last year Anthem said it would launch its own PBM, dealing a blow to Express Scripts, which is a partner of the health insurer.

Express Scripts confirms deal to be acquired by Cigna (CI) for approximately $67 bln in cash and stock stock ($48.75/share in cash, 0.2434/share in stock) 

The co's announced that they have entered into a definitive agreement whereby Cigna will acquire Express Scripts in a cash and stock transaction valued at approximately $67 billion, including Cigna's assumption of approximately $15 billion in Express Scripts debt. The merger consideration will consist of $48.75 in cash and 0.2434 shares of stock of the combined company per Express Scripts share. The transaction was approved by the board of directors of each company.

• Upon closing, the combined company will be led by David M. Cordani as President and CEO. Tim Wentworth will assume the role of President, Express Scripts. The combined company's board will be expanded to 13 directors, including four independent members of the Express Scripts board.
• Expected to deliver first year double digit earnings per share accretion and enhances Cigna's revenue and earnings growth

The transaction, which is expected to be completed by December 31, 2018, is subject to the approval of Cigna and Express Scripts shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. Until the closing, Cigna and Express Scripts will continue to operate as independent companies.

=CIGNA (CI) reported Q1 earnings on Fri 6 May 2016 (b/o)

CIGNA beats by $0.17, reports revs in-line; raisesFY16 EPS in-line :

• Reports Q1 (Mar) earnings of $2.32 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus of $2.15; revenues rose 4.4% year/year to $9.88 bln vs the $9.96 bln Capital IQ Consensus.
• Co issues raised guidance for FY16, sees EPS of $8.95-9.35 from $8.85-9.25 vs. $9.20 Capital IQ Consensus Estimate; sees FY16 revs of mid single digits growth (cons +5.7% YoY) vs. $39.97 bln Capital IQ Consensus Estimate. Cigna's medical customer base grew by 130,000 in first quarter 2016 to a total of 15.1 million customers, driven by organic growth in our Middle Market, Medicare Advantage and Select segments. The Total Government MCR8 of 86.2% for first quarter 2016 reflects the ongoing strong performance in our Medicare Advantage business as well as improved medical costs in our Medicare Part D business.