Catamaran Earnings: Here’s Why the Stock is Up Now

Catamaran Corporation (NASDAQ:CTRX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.95%.

Catamaran Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 96% to $0.49 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Rose 100.68% to $3.42 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Catamaran Corporation reported adjusted EPS income of $0.49 per share. By that measure, the company beat the mean analyst estimate of $0.44. It missed the average revenue estimate of $3.47 billion.

Quoting Management: “During the second quarter of 2013, we continued to successfully execute our growth strategy, driving new customer wins by leveraging our flexibility and customizable model to deliver more control and savings to our clients. Additionally, with our announced purchase of Restat we continue to drive a highly accretive acquisition strategy. We have assembled a highly skilled leadership team, coupled with the industry’s leading technology platform, which together are yielding exceptional results for our clients and shareholders alike. With our record financial results and continued success in the marketplace, Catamaran is positioned for a successful 2013 and poised to deliver continued growth going forward,” said Mark Thierer, Chairman and CEO of Catamaran Corporation.

Key Stats (on next page)…

Revenue increased 6.13% from $3.22 billion in the previous quarter. EPS increased 16.67% from $0.42 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.49 to a profit $0.47. For the current year, the average estimate has moved down from a profit of $1.87 to a profit of $1.84 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)