Catamaran Corp (CTRX) Tops Estimates

Catamaran Corporation (CTRX) reported fourth quarter EPS of $0.67 before the opening bell Thursday, compared to the consensus estimate of $0.61. Revenues increased 26.8% from last year to $5.74 billion. Analysts expected revenues of $5.55 billion.

The pharmacy benefits manager said Q4’14 cash flow from operations came in at $163 million, compared to $139.5 million during Q4’13. The company also announced a $405 million acquisition of Healthcare Solutions in a push to expand its presence in the workers’ compensation market. Catamaran expects to close the transaction in Q2’15.

For FY15, Catamaran Corp. provided EPS guidance of $2.45-$2.60 versus consensus of $2.59 per share. The company also issued revenue projection of $23.5-$24.5 billion, compared to the consensus revenue estimate of $23.79 billion.

“I am proud of our many accomplishments in 2014, exceeding $20 billion in revenue and delivering record financial results, while concurrently investing in our technology and service capabilities. We are confident our financial and operational momentum will carry into 2015 and beyond,” said in a statement Mark Thierer , Chairman and CEO of Catamaran.

On valuation measures, Catamaran Corp. shares, which currently have an average 3-month trading volume of 1.33 million shares, trade at a trailing-12 P/E of 37.49, a forward P/E of 20.38 and a P/E to growth ratio of 1.16. The median Wall Street price target on the name is $67.97 with a high target of $82.61. Currently ticker boasts 20 ‘Buy’ endorsements, compared to 8 ’Holds’ and no ‘Sell’.

Profitability-wise, CTRX has a t-12 profit and operating margin of 1.43% and 2.58%, respectively. The $10.95 billion market cap company reported $1.25 billion in cash vs. $1.34 billion in debt in its most recent quarter.

CTRX currently prints a one year return of less than one percent and a year-to-date return of around 2%.

The chart below shows where the equity has traded over the last 52 weeks.

Catamaran Corp. is a management services and healthcare information technology solutions provider. The company was founded in 1993 and is headquartered in Schaumburg, Illinois.

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