Back to top

Image: Bigstock

HealthEquity (HQY) to Report Q4 Earnings: What's in Store?

Read MoreHide Full Article

HealthEquity, Inc. (HQY - Free Report) is scheduled to release fourth-quarter fiscal 2020 results on Feb 18, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 113.6%. Further, it has an average four-quarter positive surprise of 46.4%.

Q4 Estimates

Currently, the Zacks Consensus Estimate for fourth-quarter fiscal 2020 revenues is pegged at $193.6 million, suggesting growth of 155.5% from the year-ago reported figure. The consensus mark for earnings is pegged at 19 cents per share, indicating a decline of 29.6% from the year-ago reported figure.

Factors at Play

HealthEquity’s fourth-quarter fiscal top line is anticipated to reflect improvement across its segments – Service Revenues, Custodial Revenues and Interchange Revenues. In fact, the company projects revenues between $520 million and $526 million, much higher than the previously projected range of $341-$347 million in fiscal 2020.

The company is likely to have experienced higher Health Savings Account (HSA) member growth, on the back of higher HSA assets. HSA member growth is also likely to have contributed the company’s fiscal fourth-quarter performance.

HealthEquity, Inc. Price and EPS Surprise

 

HealthEquity, Inc. Price and EPS Surprise

HealthEquity, Inc. price-eps-surprise | HealthEquity, Inc. Quote

HealthEquity offers 401(K) solution that can reduce the cost, risk and work of managing a retirement plan. In third-quarter fiscal 2019, management at HealthEquity confirmed that it is doing an excellent job in selling a product in the retirement space and is also optimistic about it. Going by this trend, the company’s fourth-quarter fiscal performance is expected to reflect the same.

However, intense competition in the medical services space is likely to have affected the fiscal fourth-quarter performance.

What Our Quantitative Model Suggests

Per our proven model, a combination of — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — increases the chances of an earnings beat. This is the case here as you will see.

Earnings ESP: HealthEquity has an Earnings ESP of +18.56%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: HealthEquity carries a Zacks Rank #3.

Other Stocks Worth a Look

Here are a few other medical stocks worth considering with the right combination of elements to beat on earnings this reporting cycle.

DexCom, Inc. (DXCM - Free Report) has a Zacks Rank #2 and an Earnings ESP of +12.27%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tandem Diabetes Care, Inc. (TNDM - Free Report) has a Zacks Rank of #2 and an Earnings ESP of +86.44%.

Nevro Corp. (NVRO - Free Report) is Zacks #3 Ranked and has an Earnings ESP of +3.45%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>

Published in