Healthequity Up 12.1% To $65.96 After Earnings Beat

Healthequity Inc (HQY) beat out earnings estimates for Q1 2024 this afternoon.

Healthequity's earnings came in at an EPS of $0.5 per share, 22.00% higher than estimates for an EPS of $0.41 per share. The firm's earnings are up 85% since reporting $0.27 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus estimates for Healthequity revenue averaged out to $239.4 million, with the business managing to beat those expectations with reported first-quarter revenue of $244.4 million. The $5 million (2%) positive revenue surprise led to 19% growth year-over-year as the firm reported revenue of $205.7 million in its year-ago quarter. The higher earnings growth compared to revenue points to Healthequity improving its profit margin.

The stock is up 12.1% to $65.96 after the report.

Healthequity's earnings expanded faster than revenues, signaling widening profit margins.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Healthequity has performed a little above average during the past few months. Before the report, Healthequity received a Long-Term Technical Rank by InvestorsObserver of 51, putting it in the top half of stocks. The firm was recently trading at a 52-week low of $48.86 on May 4, 2023 and set a 52-week high on November 2, 2022 at $79.2.

HealthEquity Inc provides solutions that allow consumers to make healthcare saving and spending decisions. Its technology allows customers to see their tax-advantaged healthcare savings, compare treatment options and pricing, pay healthcare bills, receive benefit information, and earn wellness incentives. The firm primarily partners with health plans and employers and serves as the custodian of its customers' health savings accounts (HSAs). HealthEquity also engages in reimbursement arrangements and offers healthcare incentives to its members. In addition, the company provides investment advisory services to customers whose account balances exceed a certain threshold. HealthEquity generates its revenue in the United States.