Catamaran 2Q profit climbs 27 pct; outlook falls

LISLE, Ill. (AP) ? Catamaran Corp., which recently changed its name from SXC Health Solutions, said Wednesday that its second-quarter earnings climbed 27 percent, as acquisitions and new customers helped the pharmacy benefits manager's revenue grow. But the company lowered its 2012 earnings forecast.

The Lisle, Ill., company said last month it was changing its name following its more than $4 billion purchase of fellow pharmacy benefits manager Catalyst Health Solutions Inc. A catamaran is a sailboat with two parallel hulls, and the company has said the new name reflects its "nimble, flexible approach."

Pharmacy benefits managers run prescription drug plans for employers, government agencies and other clients, using their large purchasing power to negotiate lower drug prices. They make money by reducing costs for health plan sponsors and members.

In the second quarter, Catamaran earned $27.3 million, or 41 cents per share. That compares with earnings of $21.6 million, or 34 cents per share, in last year's quarter.

Adjusted earnings were 49 cents per share. Revenue climbed 40 percent to $1.7 billion.

Analysts surveyed by FactSet expected, on average, earnings of 53 cents per share on $1.74 billion in revenue.

Catamaran said PBM revenue increased to $1.7 billion from $1.2 billion in last year's quarte, mostly because of new customers and the acquisition of HealthTran LLC, which closed in January.

The company's revenue total did not include a contribution from Catalyst, but Catamaran did count deal-related expenses totaling 9 cents per share in the quarter.

Selling, general and administrative expenses also nearly doubled to $61.2 million, because of additional operating costs tied to acquisitions.

Catamaran now expects 2012 adjusted earnings of $2.14 to $2.17 per share on revenue ranging from $9.9 billion to $10 billion. The company said in May it expected adjusted earnings of $2.37 to $2.45 per share on revenue of $6.8 billion to $6.9 billion.

Analysts expect, on average, earnings of $2.34 per share on $9.71 billion in revenue.

Source: http://news.yahoo.com/catamaran-2q-profit-climbs-27-pct-outlook-falls-114026657--finance.html

the time machine michelin tires michelin tires rett syndrome where the wild things are josh smith birdsong