Market Overview

HealthEquity's Earnings: A Preview


On Monday, December 07, HealthEquity (NASDAQ:HQY) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see HealthEquity reporting earnings of $0.36 per share on sales of $176.79 million. HealthEquity earnings in the same period a year ago was $0.47 per share. Quarterly sales came in at $157.12 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be down 23.4%. Revenue would be up 12.52% from the year-ago period. HealthEquity's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.27 0.44 0.35 0.22
EPS Actual 0.42 0.43 0.39 0.47
Revenue Estimate 171.28 M 193.32 M 199.26 M 152.38 M
Revenue Actual 176.04 M 190.01 M 201.20 M 157.12 M

Stock Performance

Shares of HealthEquity were trading at $70.76 as of December 03. Over the last 52-week period, shares are up 7.34%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. HealthEquity is scheduled to hold the call at 16:30:00 ET and can be accessed here.


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Posted-In: Earnings