Actionable news
All posts from Actionable news
Actionable news in CI: CIGNA CORPORATION,

Cigna Slashes Forecast as Fight for Anthem Deal Looms

  • Adjusted earnings of $1.98 a share miss estimates of $2.37
  • Shares tumble 7.2% amid loss at life, disability operation

Cigna Corp. cut its full-year forecast after the health insurer posted second-quarter earnings that fell well short of analysts’ estimates. The results may be overshadowed by questions about the prospects of its $48 billion acquisition by Anthem Inc.

Earnings, excluding certain items, were $1.98 a share, Bloomfield, Connecticut-based Cigna said Friday in a statement, compared with the $2.37 average of 16 analysts’ estimates compiled by Bloomberg. The company expects full-year adjusted earnings of $7.75 to $8.10 a share, down from $8.95 to $9.35.

The stock fell 7.2 percent to $126.20 at 8:05 a.m. in early trading in New York.

“Cigna’s quarter was disappointing and with the Anthem combination threatened by the government’s attempts to block it, we expect the shares to suffer,” Peter Costa, an analyst at Wells Fargo & Co., said in a note to clients Friday. “We wonder how much of the pressure is a result of focus on the merger.”

Cigna’s disappointing results stem from a loss at the company’s business that sells disability coverage and life...