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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