Overview
HealthEquity Inc Q2 revenue grows 9%, beating analyst expectations, per LSEG data
Net income for Q2 misses analyst estimates, per LSEG data
Adjusted EBITDA rises 18%, exceeding expectations, per LSEG data
Outlook
Company expects fiscal year revenue of $1.290 bln to $1.310 bln
HealthEquity projects net income between $185 mln and $200 mln
Company forecasts non-GAAP net income of $329 mln to $344 mln
HealthEquity anticipates adjusted EBITDA of $540 mln to $560 mln
Result Drivers
HSA GROWTH - HealthEquity reports a 6% increase in HSAs, reaching 10.0 million, contributing to revenue growth
LEGISLATIVE EXPANSION - Company anticipates benefits from recent legislative expansion of HSAs
CUSTODIAL REVENUE - Custodial revenue increased, driven by higher total HSA assets, which grew 12% year over year
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $325.84 mln | $320.80 mln (13 Analysts) |
Q2 Net Income | Miss | $59.85 mln | $81.60 mln (8 Analysts) |
Q2 Adjusted EBITDA | Beat | $151.10 mln | $135.80 mln (12 Analysts) |
Q2 Pretax Profit | Miss | $78.05 mln | $102.40 mln (5 Analysts) |
Q2 Gross Profit | $232.60 mln | ||
Q2 Operating Expenses | $142.98 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "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 $125.00, about 28.5% above its August 29 closing price of $89.33
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 26 three months ago
Press Release: ID:nGNX3l977w
(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.)