Investors snapped up shares of CIGNA Corp. Thursday after the managed care company reported fourth-quarter earnings that beat analyst expectations and offered a dose of reassurance.
The company also signaled additional job cuts Thursday above the 1,100 it announced last month.
CIGNA, which bases its health care unit in Bloomfield, said it lost $209 million, or 77 cents a share, in the quarter compared with a profit of $263 million, or 93 cents a share, a year ago.
But the company also reported an adjusted profit, excluding one-time items, of 49 cents a share and said revenue rose 8 percent to $4.82 billion.
Analysts polled by Thomson Reuters expected, on average, a profit of 41 cents a share on $4.75 billion in revenue. They typically exclude one-time items from their estimates.
Philadelphia-based CIGNA cut management bonuses by $35 million, which helped the company beat Wall Street estimates, Wachovia analyst Matt Perry said in a research note.
The company wouldn't say how many layoffs there might ultimately be in Connecticut, where it had 3,859 employees as of Dec. 30. But with more cuts still to be made from those previously announced and additional cuts likely, CIGNA could eliminate hundreds of positions here in 2009.
CIGNA shares soared $3.37, or nearly 19 percent, to close at $21.39 a share Thursday. The company also said Thursday it lowered its 2009 earnings forecast, and now expects an adjusted profit of $3.95 to $4.25 a share from operations compared with previous forecasts of $4 to $4.30 a share.
Chairman and Chief Executive H. Edward Hanway told analysts his company's capital position was strong, "and we expect to have the financial flexibility to deal with the current challenges in the capital markets."
The company also signaled additional job cuts Thursday above the 1,100 it announced last month.
CIGNA, which bases its health care unit in Bloomfield, said it lost $209 million, or 77 cents a share, in the quarter compared with a profit of $263 million, or 93 cents a share, a year ago.
But the company also reported an adjusted profit, excluding one-time items, of 49 cents a share and said revenue rose 8 percent to $4.82 billion.
Analysts polled by Thomson Reuters expected, on average, a profit of 41 cents a share on $4.75 billion in revenue. They typically exclude one-time items from their estimates.
Philadelphia-based CIGNA cut management bonuses by $35 million, which helped the company beat Wall Street estimates, Wachovia analyst Matt Perry said in a research note.
The company wouldn't say how many layoffs there might ultimately be in Connecticut, where it had 3,859 employees as of Dec. 30. But with more cuts still to be made from those previously announced and additional cuts likely, CIGNA could eliminate hundreds of positions here in 2009.
CIGNA shares soared $3.37, or nearly 19 percent, to close at $21.39 a share Thursday. The company also said Thursday it lowered its 2009 earnings forecast, and now expects an adjusted profit of $3.95 to $4.25 a share from operations compared with previous forecasts of $4 to $4.30 a share.
Chairman and Chief Executive H. Edward Hanway told analysts his company's capital position was strong, "and we expect to have the financial flexibility to deal with the current challenges in the capital markets."
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