Why did the market react negatively to today's earnings call?
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The ELT has failed and should be replaced. Wall St has made it clear that they don't have any faith in the direction. The continued offshoring will inevitably further-reduce levels of service and continue to erode the moral of existing employees. It's sad that a once-great company has been reduced to one that can't get out of it's own way. The market has spoken.
Isn't some of that collaboration intended to be cross-functional?
@z7 I hope this is sarcasm given most people don't work in same office as their teammates. We literally drive in and get on conference calls all day. Ridiculous!
Failure of the worker base to embrace RTO and fully capitalize on collaboration opportunities.
May be headed for 4 or even 5 days RTO soon.
The board tanked the company and the stock with it. Turns out, selling out Americans doesn’t play well.
https://x.com/finsee_main/status/1983853485155065958?s=46
Still business is spending lot of money on IT
Stock drop, leadership flop.
PBM margins tightening over the next 2 years along with the upcoming rebate restructure is a big part of it.
There are some good articles out there explaining this in detail, the best one I found was by Barrons (paywall) but I was able to read it in the think or swim app. Here are a couple of quotes:
"The company issued its warning on an investor call early Thursday. CEO David Cordani said that "given the significant financial and affordability pressures for partners operating heavily in government programs," the company had "improved the economic terms" of the deals its PBM strikes.
"As a result of these factors, we expect margin pressure within our pharmacy benefit service segment over the next two years," Cordani said."
""While these are 2026 headwinds, both of them serve to extend the long-term value and durability of our pharmacy benefit services platform for the future," COO Brian Evanko said on the investor call.
Pharmacy benefit services account for roughly 40% of the company's earnings, executives said. The company still expects growth in overall earnings per share next year. But Cigna COO Brian Evanko said that Evernorth Health Services , the division that includes Cigna's PBM, will see its operating income drop in 2026."
Stock price nearly always falls after earnings.
But losing 20% tells me that the big sharks see headwinds.