Why Accolade (ACCD) Shares Are Trading Higher Today - Accolade (NASDAQ:ACCD)

Accolade Inc ACCD posted Q3 FY23 sales of $90.95 million, beating the consensus of $87.53 million.
The company posted an EPS loss of $(0.56), ahead of the consensus of $(0.62), a turnaround from an income of $0.31 a year ago.
"Accolade enters the new year having just concluded one of the strongest selling performances in our company's history," said Accolade CEO Rajeev Singh.
For Q4 FY23, the company forecasts sales of $97-$101 million (consensus $101.71 million), with an adjusted EBITDA of $(1)-$3 million.
For FY23, Accolade expects revenue of $361-$365 million versus the consensus of $359.23 million.
For FY24, the company expects revenue of about $410 million (consensus $405.39 million).
Credit Suisse writes that the company has an upside opportunity with the pending T5 contract awards, which could provide a material uplift to revenue and provided some details on plans for achieving EBITDA breakeven in FY25.
The analyst is incrementally positive on the company's execution against a difficult macro backdrop and remains Neutral on the stock.
Stifel writes that ACCD's model is highly disruptive and offers the opportunity for both multiple expansion and upward revisions to estimates.
The analyst says initial guidance provides for deteriorating economic/employment fundamentals even though the company reports relative stability.
Price Action: ACCD shares are up 25.70% at $9.73 on the last check Tuesday.

Analysts Stay Bullish On Accolade Stock, Call Q3 Earnings Better Than Expected Amid Challenging Backdrop