HSA administrator HealthEquity's Q3 revenue just beats estimates on asset growth
HealthEquity's Q3 revenue rose 7% year-over-year, slightly beating analyst expectations. Adjusted EPS exceeded consensus, while net income fell short. The company returned $93.7 million to shareholders through stock repurchases. HealthEquity forecasts fiscal year revenue between $1.302 billion and $1.312 billion, net income of $197 million to $205 million, and Adjusted EBITDA of $555 million to $565 million. Total HSA assets grew 15% to $34.4 billion, driving revenue increase. Analysts rate the stock as a "buy" with a median price target of $122.50.
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Overview
- HealthEquity Q3 revenue rises 7% yr/yr, slightly beating analyst expectations
- Adjusted EPS for Q3 beats consensus, while net income misses estimates
- Company returned $93.7 mln to shareholders via stock repurchases
Outlook
- Company expects fiscal year revenue between $1.302 bln and $1.312 bln
- HealthEquity projects net income of $197 mln to $205 mln for fiscal year
- Company forecasts Adjusted EBITDA of $555 mln to $565 mln for fiscal year
Result Drivers
- HSA ASSETS GROWTH - Total HSA assets grew 15% to $34.4 bln, contributing to revenue increase
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Slight $322.16 $321.03
Revenue Beat* mln mln (14
Analysts
)
Q3 Beat $1.01 $0.93
Adjusted (13
EPS Analysts
)
Q3 Net Miss $51.69 $82.04
Income mln mln (11
Analysts
)
Q3 Beat $141.80 $132.78
Adjusted mln mln (14
EBITDA Analysts
)
Q3 Miss $67.53 $110.42
Pretax mln mln (8
Profit Analysts
)
Q3 Gross $228.06
Profit mln
Q3 $149.37
Operatin mln
g
Expenses
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
- The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 13 “strong buy” or “buy”, 2 “hold” and no “sell” or “strong sell”
- The average consensus recommendation for the software peer group is “buy”
- Wall Street’s median 12-month price target for Healthequity Inc is $122.50, about 23.9% above its December 2 closing price of $98.88
- The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
