Catalyst Health Solutions
The 10-second takeaway
For the quarter ended March 31 (Q1), Catalyst Health Solutions missed estimates on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped.
Gross margins grew, operating margins dropped, net margins contracted.
Catalyst Health Solutions logged revenue of $1.45 billion. The 13 analysts polled by S&P Capital IQ foresaw sales of $1.52 billion on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $1.12 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.62. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.59 per share. GAAP EPS of $0.39 for Q1 were 13% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 6.6%, 110 basis points better than the prior-year quarter. Operating margin was 1.9%, 130 basis points worse than the prior-year quarter. Net margin was 1.3%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.59 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $6.36 billion. The average EPS estimate is $2.70.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 308 members out of 319 rating the stock outperform, and 11 members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 123 give Catalyst Health Solutions a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Catalyst Health Solutions is hold, with an average price target of $70.64.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.