When Anthem studies forward of the bell Wednesday, analysts will likely be looking ahead to its outlook on how tax reform will affect 2018 earnings.
Analysts at Cantor Fitzgerald raised their 2018 earnings estimate for the insurer from $13.00 per share to $16.00, primarily based partly on the idea that Anthem’s tax fee will fall from 35.5 p.c to 28 p.c, as a result of tax reform.
Whether or not they’ll use that additional money to pursue a merger is more likely to be one of many huge questions for New CEO Gail Boudreaux.
“We see the corporate as having the finances and motivation to guild out a big AI staff each organilcally and thru M&A [mergers and acquisitions],” analysts at Piper Jaffray wrote in a latest analysis notice, estimating that Anthem has $5.5 billion in deployable capital, past tax financial savings.
On Thursday, Cigna CEO David Cordani is more likely to face questions on how mergers and acquisitions will determine within the agency’s plans to deploy tax reform financial savings.
Leerink analyst Ana Gupte mentioned in a latest analysis notice that Cigna executives aren’t more likely to pursue buying their very own pharmacy profit supervisor. In addition they do not appear anxious to do a deal, regardless of latest strikes by opponents.
“Cigna isn’t a deadline on capital deployment and remains to be actively considering its… strategic priorities,” Gupte wrote.