Catalyst Health Solutions Increases Sales but Misses Revenue Estimate

Seth Jayson, The Motley Fool
Updated

Catalyst Health Solutions (NAS: CHSI) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Catalyst Health Solutions missed estimates on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped.


Gross margins grew, operating margins dropped, net margins contracted.

Revenue details
Catalyst Health Solutions logged revenue of $1.45 billion. The 13 analysts polled by S&P Capital IQ foresaw sales of $1.52 billion on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $1.12 billion.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.62. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.59 per share. GAAP EPS of $0.39 for Q1 were 13% lower than the prior-year quarter's $0.45 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 6.6%, 110 basis points better than the prior-year quarter. Operating margin was 1.9%, 130 basis points worse than the prior-year quarter. Net margin was 1.3%, 50 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.59 billion. On the bottom line, the average EPS estimate is $0.65.

Next year's average estimate for revenue is $6.36 billion. The average EPS estimate is $2.70.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 308 members out of 319 rating the stock outperform, and 11 members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 123 give Catalyst Health Solutions a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Catalyst Health Solutions is hold, with an average price target of $70.64.

If you're interested in health-care stocks like Catalyst Health Solutions, you might want to expand your horizons to find maximum returns. Follow the money and meet a prime candidate for major returns in our new report, "Discover the Next Rule-Breaking Multibagger." Get instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement