Rockville-based Catalyst Health Solutions, Inc. (NASDAQ: CHSI) saw revenues jump an astounding 55 percent in the third quarter ended September 30, 2011. The nation's fastest growing pharmacy benefit manager announced revenues growth of $504.3 million to $1.43 billion versus $925.1 million in the third quarter of 2010.
The huge revenue growth comes after the acquisition of Walgreens Health Initiatives (WHI) by Catalyst in the spring of 2010. Revenues were slightly below the average estimate of 16 analysts which came to $1.45 billion.
Catalyst reported adjusted earnings per diluted share of $0.63 cents in the third quarter 2011, a change of $0.12 cents and a year-over-year increase of 24 percent from the $0.51 adjusted earnings per diluted share reported in the third quarter of 2010.
The adjusted earnings beat the average analyst estimate of $0.61 cents
Catalyst gained sales through new clients such as the Hertz Corporation and MGM Resorts International.
The company reinstated its guidance of a revenue range of $5.1 billion to $5.3 billion and $2.30 to $2.40 adjusted earnings per diluted share.
David T. Blair, Chief Executive Officer of Catalyst announced a strategy labeled the Invest Now program that will allow the company to take advantage of the changing healthcare industry. Catalyst will commit $15 million in 2012 to the program and expects to double annual new business wins.
The company also released 2012 guidance that bring the company to a new revenue range level of $5.8 billion to $6.2 billion. If that goal is reached the company would solidify a spot as a Fortune 500 company, an accomplishment that could be met by the end of the fourth quarter.