Catalyst Health Solutions Earnings Preview

Watch Catalyst Health Solutions' (Nasdaq: CHSI  ) earnings report to see if it can beat analyst expectations for the third consecutive quarter. The company will unveil its latest earnings on Tuesday, August 2. Catalyst Health Solutions is a full-service pharmacy benefit management company.

What analysts say:

• Buy, sell, or hold?: Analysts are bullish on this stock, with 10 analysts rating it as a buy and only one rating it as a sell. Analysts like Catalyst Health Solutions better than competitor Health Net overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared to three months ago.
• Revenue Forecasts: On average, analysts predict $1.19 billion in revenue this quarter. That would represent a rise of 33.7% from the year-ago quarter.
• Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.53 per share. Estimates range from $0.51 to $0.55.

What our community says:
CAPS All Stars are solidly backing the stock, with 100% assigning it an "outperform" rating. The community at large backs the All Stars, with 97% awarding it a rating of "outperform." Fools are gung-ho about Catalyst Health Solutions, though the message boards have been quiet lately with only 79 posts in the past 30 days. Catalyst Health Solutions has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Catalyst Health Solutions' profit has risen year over year by an average of 21.9%.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters:

Quarter	Q1	Q4	Q3	Q2
Gross Margin	5.5%	5.9%	6.7%	6.3%
Operating Margin	3.0%	3.4%	3.8%	3.6%
Net Margin	1.8%	2.0%	2.3%	2.2%

One final thing: If you want to keep tabs on Catalyst Health Solutions movements, and for more analysis on the company, make sure you add it to your Watchlist.

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