Catamaran (UNKNOWN:CTRX.DL) is becoming a serious contender in the pharmacy benefits management, or PBM, industry. The company reported quarterly results last week that crushed expectations. Revenue was up 101%, and net income shot up 132% in year-over-year comparisons.
Last year's Q2 results did not yet include the Catalyst merger in the reported financials. If we do include them, revenue grew 5%, and net income grew 116%. Wall Street clearly liked the improvement to the bottom line. The stock was up 7% on Thursday and is up nearly 25% year-to-date.
Motley Fool Rule Breakers analyst Simon Erickson digs into what is driving the company's success -- including a comparison to industry peers Express Scripts (NASDAQ:ESRX) and CVS Caremark (NYSE:CVS). He also discusses some metrics to keep an eye on and tailwinds that could help the company in the future.
Editor's note: This video was filmed on Aug. 2, 2013.
Max Macaluso, Ph.D. has no position in any stocks mentioned. Simon Erickson owns shares of Catamaran. The Motley Fool recommends Catamaran, Express Scripts, and UnitedHealth Group. The Motley Fool owns shares of Catamaran and Express Scripts. 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.