NEW YORK (TheStreet) -- Shares of Catamaran Corp. (CTRX - Get Report) are down 8.9% to $38.20.
Earlier today, Cleveland Research Company said Catamaran checks indicate client frustration with customer service and implementation issues.
The firm sees downside to 2014 estimates from higher expenses, system upgrades and potential to pay performance guarantees.
TheStreet Ratings team rates CATAMARAN CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CATAMARAN CORP (CTRX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 10.4%. Since the same quarter one year prior, revenues rose by 36.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CTRX's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.14, which illustrates the ability to avoid short-term cash problems.
- CATAMARAN CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CATAMARAN CORP increased its bottom line by earning $1.27 versus $0.73 in the prior year. This year, the market expects an improvement in earnings ($2.15 versus $1.27).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 75.0% when compared to the same quarter one year prior, rising from $42.53 million to $74.41 million.
- Net operating cash flow has increased to $139.57 million or 36.53% when compared to the same quarter last year. In addition, CATAMARAN CORP has also vastly surpassed the industry average cash flow growth rate of -26.65%.
- You can view the full analysis from the report here: CTRX Ratings Report