Cigna Inc. (NYSE:CI) reported second quarter earnings this morning before the market opened; both revenue and profit beat Wall Street estimates. Cigna reported an increase in healthcare premiums and fees from its commercial business. Most of Cigna's healthcare business is contributed from fees they charge large companies to manage plans for their employees.
Cigna reported net income of $573 million, or $2.12 per share, versus $505 million, or $1.76 per share from a year earlier. They also added 200,000 more policy holders over the past year. Cigna also raised its outlook for the remainder of 2014.
I am not entirely sure why the large selloff when earnings beat estimates. I am excited about the great earnings report. In my first article, I expected a pullback into the $80 per share range. After the earnings report, I see Cigna climbing back north to $105 a share.
Disclosure: The author is long CI. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.