HealthEquity Stock Falls on Disappointing Outlook
Key Takeaways
- HealthEquity shares fell Tuesday after the company's full-year profit and sales outlook missed analysts' estimates.
- The news offset better-than-expected quarterly results as revenue from all its units grew from the year before.
- The number of the company's health savings accounts and other consumer-directed benefits rose.
Shares of HealthEquity (HQY) tumbled Tuesday after the health savings account (HSA) custodian's full-year outlook missed forecasts.
The company said it expects fiscal 2025 earnings per share (EPS) of $3.08 to $3.16, and revenue of $1.185 billion to $1.195 billion. Analysts surveyed by Visible Alpha were looking for EPS of $3.72 and revenue of $1.32 billion.
The weaker-than-expected outlook offset HealthEquity’s strong third-quarter results, with EPS of 78 cents and revenue up 21% year-over-year to $300.4 million. Both figures exceeded estimates.
Service revenue came in at $119.2 million, custodial revenue was $141 million, and interchange revenue totaled $40.3 million. All three grew from the year before.
The number of HSAs was up 15% to 9.5 million, with total HSA assets jumping 33% to $30 billion. Total accounts, which include HSAs and other consumer-directed benefits (CDB), rose 8% to 16.5 million.
HealthEquity shares were down over 6% to $94.84 in afternoon trading Tuesday, though even with Tuesday’s drop, they've gained about 43% since the start of the year.
:max_bytes(150000):strip_icc()/HQY_2024-12-10_08-45-02-6f31fb277f1547d98c8273dfa060a2ca.png)
TradingView
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10