What's Next: HealthEquity's Earnings Preview

HealthEquity HQY is set to give its latest quarterly earnings report on Tuesday, 2025-06-03. Here's what investors need to know before the announcement.

Analysts estimate that HealthEquity will report an earnings per share (EPS) of $0.89.

The announcement from HealthEquity is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

In the previous earnings release, the company missed EPS by $0.03, leading to a 17.07% drop in the share price the following trading session.

Here's a look at HealthEquity's past performance and the resulting price change:

Performance of HealthEquity Shares

Shares of HealthEquity were trading at $100.61 as of May 30. Over the last 52-week period, shares are up 20.34%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on HealthEquity

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding HealthEquity.

With 8 analyst ratings, HealthEquity has a consensus rating of Outperform. The average one-year price target is $108.38, indicating a potential 7.72% upside.

Peer Ratings Comparison

The below comparison of the analyst ratings and average 1-year price targets of Alignment Healthcare, Progyny and Molina Healthcare, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Alignment Healthcare, with an average 1-year price target of $19.75, suggesting a potential 80.37% downside.
• Analysts currently favor an Buy trajectory for Progyny, with an average 1-year price target of $24.5, suggesting a potential 75.65% downside.
• Analysts currently favor an Outperform trajectory for Molina Healthcare, with an average 1-year price target of $387.17, suggesting a potential 284.82% upside.

Summary of Peers Analysis

The peer analysis summary provides a snapshot of key metrics for Alignment Healthcare, Progyny and Molina Healthcare, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

HealthEquity ranks first in revenue growth among its peers. It has the highest gross profit margin. HealthEquity's return on equity is the lowest among its peers.

All You Need to Know About HealthEquity

HealthEquity Inc provides solutions that allow consumers to make healthcare saving and spending decisions. It provides payment processing services, personalized benefit information, the ability to earn wellness incentives, and investment advice to grow their tax-advantaged healthcare savings. It manages consumers' tax-advantaged health savings accounts (HSAs) and other consumer-directed benefits (CDBs) offered by employers, including flexible spending accounts and health reimbursement arrangements (FSAs and HRAs), and administers Consolidated Omnibus Budget Reconciliation Act (COBRA), commuter and other benefits. It also provides investment advisory services to customers whose account balances exceed a certain threshold. HealthEquity generates its revenue in the United States.

HealthEquity: Delving into Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Positive Revenue Trend: Examining HealthEquity's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 18.84% as of 31 January, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: HealthEquity's net margin excels beyond industry benchmarks, reaching 8.46%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): HealthEquity's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.24%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.76%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: HealthEquity's debt-to-equity ratio is below the industry average at 0.52, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for HealthEquity visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.