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The Cigna Group (NYSE: CI) reported its fourth quarter and full year 2024 results, showcasing a robust performance despite certain challenges. For the fourth quarter of 2024, the company achieved total revenues of $65.6 billion, marking a significant 28% increase compared to the $51.1 billion recorded in the same period the previous year.

This growth was largely driven by substantial gains in Evernorth Health Services, which benefited from major client acquisitions and a surge in specialty volume growth. However, the quarter’s adjusted income from operations saw a decline of 8% from the previous year, settling at $1.8 billion or $6.64 per share. This dip was attributed primarily to elevated medical costs in Cigna Healthcare’s stop-loss product, though it was partially mitigated by the strong performance of Evernorth Health Services.
 

Cigna’s Reported EPS for Q4 2024 Falls Short of Expectations

Shareholders’ net income for the fourth quarter was $1.4 billion, or $5.13 per share, reflecting an improvement from the $1.0 billion, or $3.49 per share, reported in the fourth quarter of 2023. The increase in net income was achieved despite a decrease in adjusted income from operations, highlighting the company’s ability to manage its financials effectively amidst rising costs. The company has also emphasized its commitment to addressing these cost challenges through strategic actions aimed at enhancing long-term growth.

When comparing the actual results to market expectations, Cigna’s performance in the fourth quarter of 2024 presents a mixed picture. The anticipated earnings per share (EPS) for the quarter stood at $7.79, but the actual EPS came in at $6.64, falling short of projections.

This underperformance is largely attributed to the higher medical costs impacting Cigna Healthcare, which put downward pressure on the company’s overall profitability. Despite this, the company’s revenue for the quarter exceeded expectations, reaching $65.6 billion compared to the anticipated $63.16 billion. This revenue beat was driven by the exceptional growth in Evernorth Health Services, which continued to secure large client wins and expand its specialty services.

For the full year 2024, Cigna reported adjusted income from operations of $7.7 billion, or $27.33 per share, which indicates a 4% increase from the previous year. This growth is consistent with the company’s strategic focus on expanding its Evernorth segment. However, the full-year shareholders’ net income saw a reduction to $3.4 billion from $5.2 billion in 2023, primarily due to a non-cash after-tax investment loss related to VillageMD equity securities.
 

Cigna Maintains Optimistic Outlook for 2025

Looking ahead, Cigna has set forth an optimistic outlook for 2025, projecting an adjusted income from operations of at least $7.9 billion, or $29.50 per share. This forecast reflects the company’s confidence in its strategic initiatives and its ability to navigate the current healthcare landscape.

The guidance also incorporates the anticipated closure of the divestiture of its Medicare businesses in the first quarter of 2025, which is expected to streamline operations and focus resources on core growth areas. Cigna’s board of directors has also approved an 8% increase in the quarterly dividend to $1.51 per share, signaling a strong commitment to returning value to shareholders. Additionally, the company has expanded its share repurchase authorization by $6.0 billion, bringing the total to $10.3 billion.

Cigna’s strategic focus remains on strengthening its core operations and expanding its presence in key markets. The company continues to invest in Evernorth Health Services, which has emerged as a vital growth driver. This segment has demonstrated impressive gains, with a 33% increase in adjusted revenues for the fourth quarter compared to the previous year. The investments in specialty and care services, including the adoption of biosimilars like Humira, underscore Cigna’s commitment to innovation and cost-effective healthcare solutions.

Cigna Healthcare, while challenged by higher medical costs, is working to enhance operational efficiency and improve its medical care ratio. The company is also focused on maintaining and growing its customer relationships, which reached 182.2 million by the end of 2024, marking an 11% increase from the previous year.

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