By Paul Ziobro

HealthEquity boosted its outlook for the year after posting third-quarter results that topped Wall Street estimates, aided by increases in user accounts and assets held in them.

Its preliminary revenue outlook for the upcoming year, however, fell short of expectations.

The Draper, Utah.-based health-savings account custodian on Monday posted a profit of $5.7 million, or 6 cents a share, compared with a profit of $14.7 million, or 17 cents a share, in the same quarter a year ago.

Adjusted earnings were 78 cents a share. Analysts polled by FactSet expected 72 cents.

Revenue rose 21% to $300.4 million, topping the $290 million expected by analysts.

The company had about 9.5 million health savings accounts at the end of October, up 15% from a year ago. Total assets in those HSA are up 33% to $30 billion.

For the full year, HealthEquity now expects adjusted per-share earnings between $3.08 and $3.16, up from its prior view of between $2.98 and $3.14. It expect revenue between $1.19 billion and nearly $1.2 billion, up from its prior range of $1.17 billion and $1.19 billion.

The company also raised its view for adjusted earnings before interest, taxes, depreciation and amortization to between $470 million and $480 million, up from a prior range of $458 million to $478 million.

For its next fiscal year, HealthEquity expects revenue between $1.28 billion and nearly $1.3 billion. Analysts polled by FactSet expected $1.32 billion.

Write to Paul Ziobro at paul.ziobro@wsj.com

(END) Dow Jones Newswires

December 09, 2024 16:20 ET (21:20 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.