Cigna 2Q profit falls 62 percent
PHILADELPHIA – Insurance provider Cigna Corp. said Wednesday its second-quarter profit fell 62 percent from a year-ago quarter that benefited from gains, but the results beat Wall Street’s expectations and the company’s stock surged on the news.Shares of Cigna rose $12.59, or 14 percent, to $105.25 in early trading on the New York Stock Exchange.The results reflect strength in the health care business as well as its disability and life and international businesses, Cigna said.Net income for the quarter ended June 30 was $273 million, or $2.33 per share, versus $720 million, or $5.48 per share, a year ago. The 2005 quarter includes an $81 million tax gain, a $29 million gain related to an asset sale and income from discontinued operations of $349 million.The company said its adjusted income from operations grew to $270 million, or $2.31 per share, from $260 million, or $1.98 per share, a year ago.Total revenue was $4.098 billion versus $4.107 billion last year.On average, analysts surveyed by Thomson Financial forecast a profit of $1.94 per share on revenue of $4.03 billion.Cigna also said it expects to earn $2 to $2.20 per share in the third quarter and $8.30 to $8.80 per share for the full year, on an adjusted basis. The third-quarter estimate brackets the consensus per-share figure of $2.05 and the full-year forecast exceedes the consesus estimate of $8.25 per share, according to a Thomson Financial survey of 15 analysts.
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