HealthEquity Stock Climbs After Better-Than-Expected Q1 Results, Strong Forward Guidance

HealthEquity, Inc. HQY shares are climbing after the company reported its first-quarter financial results Monday. Here's a look at the highlights from the report. 

The Details: HealthEquity reported quarterly earnings of 80 cents per share which beat the analyst consensus estimate of 66 cents by 21.21% and represents a 60% increase over earnings of 50 cents per share from the same period last year.

Quarterly sales came in at $287.6 million which beat the analyst consensus estimate of $278.11 million and represents a 17.66% increase over sales of $244.43 million from the same period last year.

The company said that revenue consisted of service revenue of $118.2 million, custodial revenue of $121.6 million and interchange revenue of $47.7 million. HSAs as of April 30, 2024, were 9.1 million, an increase of 13% year over year, including 665,000 HSAs with investments, an increase of 20% year over year. Total Accounts as of April 30, 2024 were 16 million, including 6.9 million other consumer-directed benefits.

“Record first quarter HSA sales, greater Enhanced Rates adoption, and timely transition of two of three BenefitWallet tranches made for a great team start to fiscal 2025,” said Jon Kessler, President and CEO of HealthEquity.

“With momentum on both growth and margins, we are raising full-year guidance and pushing forward our platform investments to deliver remarkable experiences, deepen partnerships, and drive member outcomes.”

Outlook: HealthEquity sees fiscal year earnings between $2.93 and $3.10 per share, versus the $2.90 per share estimate, and fiscal year revenue of between $1.16 billion and $1.18 billion, versus the $1.16 billion estimate.

HQY Price Action: According to Benzinga Pro, HealthEquity shares are up 4.03% after-hours at $84.49 at the time of publication Monday.

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