Catamaran Up 13%: Here's Why

Catamaran (NASDAQ: CTRX  ) shareholders had a great day, with shares up 13% after the pharmacy benefits manager (PBM) reported stellar first quarter earnings that beat on both the top and bottom lines. Revenue spiked 53% year over year to $4.9 billion, while adjusted EPS climbed 16% to $0.50 per share. The company continues to see significant lift from the 10-year contract it signed last year with Cigna to provide prescription drug benefits for the insurer's members.

That higher volume came at the price of some margin pressure, with gross margin declining to 6%. SG&A expenses climbed 30% to $131 million due to the acquisition of Restat, another PBM, for $410 million last year.

Management also reaffirmed revenue guidance of $20 billion to $21 billion and increased adjusted EPS guidnace to $2.10 to $2.22. All in all, great news across the board for the PBM. In the video below, Motley Fool health care analysts David Williamson and Michael Douglass discuss the other major takeaways from the quarter and what investors should watch for next.

Catamaran investors are happy today -- but could this stock be even better?
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2940394, ~/Articles/ArticleHandler.aspx, 11/23/2014 1:14:15 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement