HealthEquity's Earnings Outlook

HealthEquity (NASDAQ:HQY) will release its quarterly earnings report on Tuesday, 2025-09-02. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate HealthEquity to report an earnings per share (EPS) of $0.85.

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.

Historical Earnings Performance

Last quarter the company beat EPS by $0.16, which was followed by a 8.96% increase in the share price the next day.

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

Market Performance of HealthEquity's Stock

Shares of HealthEquity were trading at $88.29 as of August 28. Over the last 52-week period, shares are up 13.61%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on HealthEquity

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on HealthEquity.

The consensus rating for HealthEquity is Outperform, derived from 9 analyst ratings. An average one-year price target of $117.44 implies a potential 33.02% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of Molina Healthcare, Alignment Healthcare and Progyny, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Molina Healthcare, with an average 1-year price target of $241.79, suggesting a potential 173.86% upside.
• Analysts currently favor an Neutral trajectory for Alignment Healthcare, with an average 1-year price target of $17.0, suggesting a potential 80.75% downside.
• Analysts currently favor an Neutral trajectory for Progyny, with an average 1-year price target of $26.2, suggesting a potential 70.33% downside.

Key Findings: Peer Analysis Summary

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

Key Takeaway:

HealthEquity ranks at the bottom for Revenue Growth among its peers. It is also at the bottom for Gross Profit. However, it is at the top for Return on Equity.

Delving into HealthEquity's Background

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's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: HealthEquity displayed positive results in 3 months. As of 30 April, 2025, the company achieved a solid revenue growth rate of approximately 15.04%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: HealthEquity's net margin excels beyond industry benchmarks, reaching 16.3%. 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 2.54%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.57%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.52.

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.