uploads///Graph

ANTM or CI: Comparing Their Earnings Growth in 2019

By

Apr. 15 2019, Published 1:31 p.m. ET

Earnings guidance

In its fourth-quarter earnings press release, Anthem (ANTM) guided for 2019 GAAP (generally accepted accounting principles) EPS of more than $18.00, a YoY (year-over-year) rise of over 26.8%. The company also guided for adjusted EPS of more than $19.00 in 2019, a YoY rise of over 19.6%.

According to the company’s fourth-quarter earnings conference call, these projections are based on robust growth projections for all of its business lines and an anticipated partial-year contribution from pharmacy benefits provider IngenioRx. Anthem is focused on accelerating the implementation of IngenioRx in collaboration with CVS Health, and it expects to launch the service in the second quarter of 2019.

Article continues below advertisement

According to its fourth-quarter earnings conference call, Anthem expects to realize gross pharmaceutical savings of at least $4.0 billion annually following the completion of the transition of all of its members to IngenioRx, which is now scheduled for the end of the first quarter of 2020. The company expects a minimum of 20% of these savings to go to its shareholders.

In its fourth-quarter earnings press release, Cigna (CI) guided for 2019 adjusted income from operations in the range of $6.2 billion–$6.4 billion. It expects its adjusted income from operations per share in 2019 to be $16.00–$16.50.

On its fourth-quarter earnings conference call, Cigna guided for 15% average annual EPS growth from 2019 to 2021. Its EPS target is $20–$21 for 2021.

Wall Street’s projections

Wall Street analysts expect Anthem’s non-GAAP EPS to be $19.15, $22.74, and $26.07, respectively, in 2019, 2020, and 2021, implying YoY rises of 20.54%, 18.73%, and 14.63%, respectively.

On the other hand, Wall Street analysts expect Cigna’s non-GAAP EPS to be $16.47, $18.51, and $20.68, respectively, in 2019, 2020, and 2021, implying YoY rises of 15.81%, 12.40%, and 11.70%, respectively.

Advertisement

More From Market Realist