Cigna’s purchase of pharmacy benefits manager (PBM) Express Scripts boosted the insurer’s revenue and profit in the first three months of the year, the global health insurer said Thursday.
Cigna, which sells government Medicare plans, health plans for large- and medium-sized corporations and runs pharmacy benefits, also hiked its full-year guidance.
The corporation said the benefits of buying Express Scripts, which it did for $52 billion in December, were reflected in its Health Services segment results for the first quarter. It also said first-quarter results reflect contributions from its Integrated Medical segment.
Cigna earned $1.37 billion, or $3.56 a share, compared with $915 million, or $3.72 a share, a year earlier. On an adjusted basis, income was $3.90 a share, above Wall Street expectations of $3.73 a share.
Revenue tripled from the year-earlier period to $37.95 billion compared to analyst expectations of $33.11 billion.
“Our combination with Express Scripts is fueling additional innovative programs for the benefit of our customers and patients, as we accelerate our efforts to improve the affordability of health care,” CEO David Cordani said in a statement.
Cigna raised its full-year forecast for adjusted income to a range of $16.25 to $16.65 per share from an earlier forecast of a range of $16 to $16.50 per share.
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The insurer also increased its 2019 adjusted revenue forecast to a range of $132.50 billion to $134.50 billion from an earlier forecast of a range of $131.5 billion to $133.50 billion.
View more information: https://www.foxbusiness.com/markets/cigna-1q-gains-on-express-scripts-acquisition