Cigna missed Wall Street estimates as medical costs rise
Cigna’s share price fell after it missed quarterly estimates, in large part because it spent too much of its revenue covering medical care.
Cigna spent 87.9% of its revenue covering patient medical expenses; analysts polled by FactSet expected 84.7%. It brought it $1.8 billion in net income, compared to the $2.1 billion analysts were expecting.
The company said higher medical costs weighed on its earnings. Investors sent the company’s share price down more than 8% shortly after market open.
Cigna competitor UnitedHealth reported earnings last week, also missing estimates. It said changes in funding to the government health programs Medicare and Medicaid, as well as a cyber attack, weighed on its earnings.
Cigna competitor UnitedHealth reported earnings last week, also missing estimates. It said changes in funding to the government health programs Medicare and Medicaid, as well as a cyber attack, weighed on its earnings.
