In its fourth-quarter earnings press release, Anthem (ANTM) guided for 2019 operating revenue of $100 billion, a YoY (year-over-year) rise of $8.7 billion, or 9.5%. The company also guided for premium revenue of $90.5 billion–$92.5 billion for 2019, a YoY rise of $5.1 billion–$7.1 billion, or 6.0%–8.3%.
In the fourth quarter, Anthem reported operating revenue of $23.30 billion, a YoY rise of 3.82% and $41.12 million higher than the consensus estimate driven mainly by robust growth in its government-sponsored business. However, according to Anthem’s fourth-quarter earnings conference call, its individual marketplace business had reported a YoY decline of 933,000 members as of the end of the fourth quarter due to the company’s planned exits from certain markets.
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
According to the company’s fourth-quarter earnings conference call, it plans to increase investments in areas such as healthcare provider collaboration, AI, and clinical and digital integration.
In its fourth-quarter earnings press release, Cigna (CI) guided for adjusted revenue in the range of $131.50 billion–$133.50 billion. The company reported revenue of $13.75 billion in the fourth quarter, a YoY rise of 30.86% and $2.37 billion above the consensus estimate.
On December 20, 2018, Cigna issued a press release announcing the completion of its acquisition of Express Scripts. According to Cigna’s fourth-quarter earnings conference call, following the acquisition, the combined company will have five reporting segments: Group Disability and Other, Corporate, International Markets, Health Services, and Integrated Medical.
Wall Street’s projections
Wall Street analysts expect Anthem’s revenues to be $100.48 billion, $111.06 billion, and $121.09 billion, respectively, in 2019, 2020, and 2021, implying YoY rises of 10.00%, 10.53%, and 9.03%, respectively.
On the other hand, Wall Street analysts expect Cigna’s revenues to be $132.94 billion, $140.66 billion, and $149.01 billion, respectively, in 2019, 2020, and 2021, implying YoY rises of 176.32%, 5.81%, and 5.94%, respectively.