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Cigna (NYSE:CI) is expected to report Q2 earnings Thursday, July 30 before market open, with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for EPS of 96c on revenue of $4.8B. The consensus range is 85c-$1.10 for EPS, and $4.7B-$4.9B for revenue, according to First Call. In June Cigna reaffirmed its FY09 EPS view of $3.70-$3.90.

Analyst Views

Possible positive drivers for the quarter include gains in Cigna's investment portfolio, and an improving cost structure. Negatives for Cigna's Q2 results can be anticipated from the results already out from peers like Aetna (NYSE:AET), which was hurt by rising medical costs an anemic enrollments due to higher unemployment rates.

On July 8, UBS said a potential sale of Cigna's pharmacy-benefit management business could generate $750M-$1B pre-tax and offset its under-funded pension fund and allow share repurchases earlier than expected. The firm views valuation as attractive and reiterates its Buy rating.

Source: Earnings Preview: Cigna