HealthEquity (NASDAQ:HQY) is preparing to release its quarterly earnings on Monday, 2024-12-09. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect HealthEquity to report an earnings per share (EPS) of $0.71.
HealthEquity bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Historical Earnings Performance
In the previous earnings release, the company beat EPS by $0.16, leading to a 5.13% increase in the share price the following trading session.
Here's a look at HealthEquity's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.70 | 0.66 | 0.56 | 0.5 |
| EPS Actual | 0.86 | 0.80 | 0.63 | 0.6 |
| Price Change % | 5.0% | 3.0% | -3.0% | 0.0% |
Market Performance of HealthEquity's Stock
Shares of HealthEquity were trading at $100.845 as of December 05. Over the last 52-week period, shares are up 42.32%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Take on HealthEquity
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on HealthEquity.
Analysts have provided HealthEquity with 6 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $118.17, suggesting a potential 17.18% upside.
Comparing Ratings Among Industry Peers
The below comparison of the analyst ratings and average 1-year price targets of Alignment Healthcare, Clover Health Investments and Progyny, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- As per analysts' assessments, Alignment Healthcare is favoring an Buy trajectory, with an average 1-year price target of $12.5, suggesting a potential 87.6% downside.
- The prevailing sentiment among analysts is an Neutral trajectory for Clover Health Investments, with an average 1-year price target of $4.0, implying a potential 96.03% downside.
- The consensus among analysts is an Neutral trajectory for Progyny, with an average 1-year price target of $21.0, indicating a potential 79.18% downside.
Overview of Peer Analysis
The peer analysis summary provides a snapshot of key metrics for Alignment Healthcare, Clover Health Investments and Progyny, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| HealthEquity | Outperform | 23.15% | $204.05M | 1.68% |
| Alignment Healthcare | Buy | 51.61% | $78.99M | -22.17% |
| Clover Health Investments | Neutral | 8.16% | $81.21M | -2.74% |
| Progyny | Neutral | 2.04% | $59.24M | 2.34% |
Key Takeaway:
HealthEquity ranks highest in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity.
Get to Know HealthEquity Better
HealthEquity Inc provides solutions that allow consumers to make healthcare saving and spending decisions. It provides payment processing services, personalized benefit information, the ability to earn wellness incentives, and investment advice to grow their tax-advantaged healthcare savings. It manages consumers' tax-advantaged health savings accounts (HSAs) and other consumer-directed benefits (CDBs) offered by employers, including flexible spending accounts and health reimbursement arrangements (FSAs and HRAs), and administers Consolidated Omnibus Budget Reconciliation Act (COBRA), commuter and other benefits. It also provides investment advisory services to customers whose account balances exceed a certain threshold. HealthEquity generates its revenue in the United States.
Key Indicators: HealthEquity's Financial Health
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: HealthEquity displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 23.15%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.
Net Margin: HealthEquity's net margin excels beyond industry benchmarks, reaching 11.94%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): HealthEquity's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1.68%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): HealthEquity's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.06% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.54, HealthEquity adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for HealthEquity visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
