The 10-second takeaway
For the quarter ended March 31 (Q1), Catamaran missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins increased across the board.
Catamaran reported revenue of $3.22 billion. The 20 analysts polled by S&P Capital IQ anticipated a top line of $3.52 billion on the same basis. GAAP reported sales were 88% higher than the prior-year quarter's $1.72 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 $0.42. The 22 earnings estimates compiled by S&P Capital IQ averaged $0.41 per share. Non-GAAP EPS of $0.42 for Q1 were 62% higher than the prior-year quarter's $0.26 per share. GAAP EPS of $0.25 for Q1 were 19% higher than the prior-year quarter's $0.21 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 7.7%, 130 basis points better than the prior-year quarter. Operating margin was 2.8%, 40 basis points better than the prior-year quarter. Net margin was 1.6%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.56 billion. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $14.43 billion. The average EPS estimate is $1.88.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 363 members out of 383 rating the stock outperform, and 20 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give Catamaran a green thumbs-up, and six 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 $62.97.
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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 recommends Catamaran. The Motley Fool owns shares of 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.