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HealthEquity (HQY) Stock Up on Solid Fiscal 2020 Results
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HealthEquity (HQY - Free Report) recently announced total accounts and Health Savings Account (“HSA”) assets for the fiscal year ended Jan 31, 2020. Per Barrington Research, the company is expected to report full-year and fourth-quarter fiscal 2020 results on Mar 17.
Following the release, shares of the Zacks Rank #3 (Hold) company shot up 10.7% to $86.63 at close.
HSA Member Details
As of Jan 31, 2020, the total number of HSAs for which HealthEquity serves as a non-bank custodian was 5.3 million, highlighting an increase of 34% from fiscal 2019. In fact, HealthEquity exited fiscal 2020 with 12.8 million total accounts, up 180% from fiscal 2019. Per management, the massive surge is attributable to the acquisition of WageWorks.
Also, HSA Assets grew to $11.5 billion, up 43% from a year earlier.
Based on the aforementioned results, HealthEquity raised its fiscal 2020 guidance.
Revenues are expected within $530-$532 million compared with the previously-projected band of $520-$526 million. The Zacks Consensus Estimate for revenues is pegged at $524.1 million.
Net income is projected in the range of $39-$41 million, while the same for adjusted EBITDA is at $194-$196 million.
Adjusted earnings per share are anticipated between $1.71 and $1.73. This compares to the previously announced range of $1.46-$1.52. The Zacks Consensus Estimate for the same is pinned at $1.50.
FY21 View
For fiscal 2021, the company expects revenues within $812-$820 million. The Zacks Consensus Estimate stands at $823.7 million.
Price Performance
Over the past year, the stock has rallied 8.2% against the industry’s 16.4% decline.
Wrapping Up
With solid HSA member growth, HealthEquity has exited fiscal 2020 on a strong note. Solid growth in HSAs and custodial assets are expected to have bolstered the company’s top-line performance. Reflective of these, the company further raised its fiscal 2020 guidance. HealthEquity also issued an impressive view for fiscal 2021. Management is also optimistic about the WageWorks acquisition which drove total number of accounts in fiscal 2020.
AmerisourceBergen’s long-term earnings are expected to grow 7.4%.
Cardinal Health’s long-term earnings are projected to rise 6.2%.
Patterson long-term earnings are estimated to climb 6.4%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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HealthEquity (HQY) Stock Up on Solid Fiscal 2020 Results
HealthEquity (HQY - Free Report) recently announced total accounts and Health Savings Account (“HSA”) assets for the fiscal year ended Jan 31, 2020. Per Barrington Research, the company is expected to report full-year and fourth-quarter fiscal 2020 results on Mar 17.
Following the release, shares of the Zacks Rank #3 (Hold) company shot up 10.7% to $86.63 at close.
HSA Member Details
As of Jan 31, 2020, the total number of HSAs for which HealthEquity serves as a non-bank custodian was 5.3 million, highlighting an increase of 34% from fiscal 2019. In fact, HealthEquity exited fiscal 2020 with 12.8 million total accounts, up 180% from fiscal 2019. Per management, the massive surge is attributable to the acquisition of WageWorks.
Also, HSA Assets grew to $11.5 billion, up 43% from a year earlier.
HealthEquity, Inc. Price and Consensus
HealthEquity, Inc. price-consensus-chart | HealthEquity, Inc. Quote
FY20 Guidance Raised
Based on the aforementioned results, HealthEquity raised its fiscal 2020 guidance.
Revenues are expected within $530-$532 million compared with the previously-projected band of $520-$526 million. The Zacks Consensus Estimate for revenues is pegged at $524.1 million.
Net income is projected in the range of $39-$41 million, while the same for adjusted EBITDA is at $194-$196 million.
Adjusted earnings per share are anticipated between $1.71 and $1.73. This compares to the previously announced range of $1.46-$1.52. The Zacks Consensus Estimate for the same is pinned at $1.50.
FY21 View
For fiscal 2021, the company expects revenues within $812-$820 million. The Zacks Consensus Estimate stands at $823.7 million.
Price Performance
Over the past year, the stock has rallied 8.2% against the industry’s 16.4% decline.
Wrapping Up
With solid HSA member growth, HealthEquity has exited fiscal 2020 on a strong note. Solid growth in HSAs and custodial assets are expected to have bolstered the company’s top-line performance. Reflective of these, the company further raised its fiscal 2020 guidance. HealthEquity also issued an impressive view for fiscal 2021. Management is also optimistic about the WageWorks acquisition which drove total number of accounts in fiscal 2020.
Key Picks
Some better-ranked stocks in the broader medical space are AmerisourceBergen Corporation , Cardinal Health (CAH - Free Report) and Patterson Companies (PDCO - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AmerisourceBergen’s long-term earnings are expected to grow 7.4%.
Cardinal Health’s long-term earnings are projected to rise 6.2%.
Patterson long-term earnings are estimated to climb 6.4%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>