The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Catamaran missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins dropped, net margins dropped.
Catamaran booked revenue of $3.19 billion. The 19 analysts polled by S&P Capital IQ wanted to see revenue of $3.24 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $1.29 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 $0.25. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.24 per share. GAAP EPS of $0.10 for Q3 were 50% lower than the prior-year quarter's $0.20 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 7.4%, 100 basis points better than the prior-year quarter. Operating margin was 1.4%, 170 basis points worse than the prior-year quarter. Net margin was 0.6%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.34 billion. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $10.01 billion. The average EPS estimate is $1.10.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 327 members out of 345 rating the stock outperform, and 18 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 give Catamaran a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Catamaran is outperform, with an average price target of $56.84.
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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 here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Catamaran. Motley Fool newsletter services recommend Catamaran. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.