We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the last reported quarter, the company’s earnings per share (EPS) of 63 cents surpassed the Zacks Consensus Estimate by 12.5%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 17.4%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Over the past few months, HealthEquity has been gaining from its continued strength in Health Savings Accounts (“HSA”). In March 2024, the first of the three HSA Asset transfers from BenefitWallet occurred, with approximately 266,000 HSAs and $1.1 billion of HSA Assets transferring to HealthEquity’s custody. In May, the company closed the BenefitWallet HSA portfolio acquisition, thus adding $2.8 billion of HSA Assets held in 665,000 customer accounts.
In the fourth quarter of fiscal 2024, the company recorded an 8.9% year-over-year uptick in the total number of HSA for which it served as a non-bank custodian (HSA members), while the total HSA assets at the end of Jan 31, 2024 were up 13.9% year over year. We expect HealthEquity to continue to witness this momentum with the addition of new HSA Assets, which is likely to have significantly driven up its revenues in the first quarter of fiscal 2025.
The Zacks Model anticipates the total HSA assets and accounts to be up 12.3% and 4.8%, respectively, in the fiscal first quarter.
On the fiscal fourth-quarter earnings call in March, HealthEquity’s management confirmed that the company is focusing capital investment on its proprietary health accounts platform and the ecosystem to which it connects, leveraging foundations in the cloud, data science and API technology to deliver notable experiences, deepen partnerships and drive member outcomes (3Ds). This also raises our optimism about the company’s fiscal first-quarter performance.
The Estimate Picture
For the first quarter of fiscal 2025, the Zacks Consensus Estimate of $278.8 million for total revenues calls for an uptick of 14.1% from the prior-year reported figure.
The consensus estimate for EPS is pegged at 66 cents, which indicates an improvement of 32% from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: HealthEquity has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Bath & Body Works’ earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 23.2%.
Micron Technology, Inc. (MU - Free Report) has an Earnings ESP of +5.22% and a Zacks Rank of 2. MU has an estimated growth rate of 119.1% for fiscal 2024.
Micron Technology’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 69.6%.
Align Technology, Inc. (ALGN - Free Report) has an Earnings ESP of +1.58% and a Zacks Rank of 2. ALGN has an estimated long-term growth rate of 6.9%.
Align Technology’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 5.9%.
Image: Bigstock
Strength in HSA Likely to Aid HealthEquity's (HQY) Q1 Earnings
HealthEquity, Inc. (HQY - Free Report) is scheduled to release first-quarter fiscal 2025 results on Jun 3 after the closing bell.
In the last reported quarter, the company’s earnings per share (EPS) of 63 cents surpassed the Zacks Consensus Estimate by 12.5%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 17.4%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Over the past few months, HealthEquity has been gaining from its continued strength in Health Savings Accounts (“HSA”). In March 2024, the first of the three HSA Asset transfers from BenefitWallet occurred, with approximately 266,000 HSAs and $1.1 billion of HSA Assets transferring to HealthEquity’s custody. In May, the company closed the BenefitWallet HSA portfolio acquisition, thus adding $2.8 billion of HSA Assets held in 665,000 customer accounts.
In the fourth quarter of fiscal 2024, the company recorded an 8.9% year-over-year uptick in the total number of HSA for which it served as a non-bank custodian (HSA members), while the total HSA assets at the end of Jan 31, 2024 were up 13.9% year over year. We expect HealthEquity to continue to witness this momentum with the addition of new HSA Assets, which is likely to have significantly driven up its revenues in the first quarter of fiscal 2025.
The Zacks Model anticipates the total HSA assets and accounts to be up 12.3% and 4.8%, respectively, in the fiscal first quarter.
HealthEquity, Inc. Price and EPS Surprise
HealthEquity, Inc. price-eps-surprise | HealthEquity, Inc. Quote
On the fiscal fourth-quarter earnings call in March, HealthEquity’s management confirmed that the company is focusing capital investment on its proprietary health accounts platform and the ecosystem to which it connects, leveraging foundations in the cloud, data science and API technology to deliver notable experiences, deepen partnerships and drive member outcomes (3Ds). This also raises our optimism about the company’s fiscal first-quarter performance.
The Estimate Picture
For the first quarter of fiscal 2025, the Zacks Consensus Estimate of $278.8 million for total revenues calls for an uptick of 14.1% from the prior-year reported figure.
The consensus estimate for EPS is pegged at 66 cents, which indicates an improvement of 32% from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: HealthEquity has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Stocks Worth a Look
Here are a few stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Bath & Body Works, Inc. (BBWI - Free Report) has an Earnings ESP of +5.23% and a Zacks Rank of 2. BBWI has an estimated long-term growth rate of 9.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bath & Body Works’ earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 23.2%.
Micron Technology, Inc. (MU - Free Report) has an Earnings ESP of +5.22% and a Zacks Rank of 2. MU has an estimated growth rate of 119.1% for fiscal 2024.
Micron Technology’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 69.6%.
Align Technology, Inc. (ALGN - Free Report) has an Earnings ESP of +1.58% and a Zacks Rank of 2. ALGN has an estimated long-term growth rate of 6.9%.
Align Technology’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 5.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.