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Key Morning Earnings for May 6: CI, CST, MSG, USM

As Q1 earnings season continues, more and more companies are posting their earnings results. On Friday, four big names in the health insurance, retail, entertainment, and wireless industries reported their quarterly earnings before the bell. Let’s take a look.

Cigna Corp. CI

The healthcare insurance company reported Q1 operating earnings of $2.32 per share, comfortably beating the Zacks Consensus Estimate of $2.17 by 6.9% and rising 18.4% year-over-year. Revenues of $9.9 billion topped our consensus estimate of $9.6 billion and increased 5.6% year-over-year. Higher contribution from its segments, namely Global Health Care, Global Supplemental Benefits, and Group Disability and Life, drove the upside. For 2016, Cigna forecasts income from operations in the high single-digit range, with earnings per share of $8.95–$9.35. The company also expects mid-single-digit growth in revenues.

CST Brands, Inc. CST

The San Antonio, Texas-based gas station convenience store retailer reported adjusted earnings per share of $0.27 (excluding special items), beating the Zacks Consensus Estimate of $0.24. Revenues of $2.03 billion in the quarter, also topping our consensus estimate of $2.02 billion. Store operations delivered a strong performance with U.S. Merchandise and Services Gross Profit growth of 25% year-over-year, thanks to 20% sales growth and a 160 basis point improvement in gross margin.

Madison Square Garden Co. MSG

A company involved in the sports, entertainment, and media industries, Madison Square Garden reported a Q3 loss of $60.8 million. Adjusted earnings per share came in at a loss of $-0.77, missing the Zacks Consensus Estimate of a loss of $-0.49 per share. Revenues of $336.3 million beat our consensus estimate of $325.5 million but decreased 25.26% year-over-year. The company noted that the results for the third quarter reflect the allocation of corporate general and administrative costs based on accounting requirements for the preparation of carve-out financial statements.

U.S. Cellular Co. USM

One of the largest wireless companies in the U.S., U.S. Cellular reported disappointing Q1 results. Earnings per share of $0.10 fell way behind the Zacks Consensus Estimate of $0.23 per share. Revenues of $958 million also missed our consensus estimate of $972.2 million. The company reiterated its full-year 2016 guidance, with total operating revenues expected to be in the range of $3.9 billion-$4.1 billion and adjusted EBITDA in the range of $725 million-$850 million.

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CIGNA CORP (CI): Free Stock Analysis Report
 
MADISON SQUAR-A (MSG): Free Stock Analysis Report
 
US CELLULAR (USM): Free Stock Analysis Report
 
CST BRANDS INC (CST): Free Stock Analysis Report
 
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