Latest news with #HealthEquity
Yahoo
a day ago
- Business
- Yahoo
What are HSAs? HealthEquity's CEO explains the pros & cons
Health savings accounts, better known as HSAs, are designed to help people pay for their healthcare and come with some tax advantages. In the video above, HealthEquity (HQY) CEO Scott Cutler explains the pros and cons of HSAs and how they may be impacted by President Trump's "Big Beautiful Bill." To watch more expert insights and analysis on the latest market action, check out more Wealth here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
HealthEquity Stock Gains as Q1 Earnings Beat Estimates, Revenues Up Y/Y
HealthEquity, Inc. HQY reported adjusted earnings per share (EPS) of 97 cents for first-quarter fiscal 2026, surpassing the Zacks Consensus Estimate by 19.8%. The bottom line improved 21.3% on a year-over-year basis. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.) GAAP EPS in the fiscal first quarter was 61 cents, up 84.8% compared with the year-ago quarter's EPS. Shares of HQY were up 5.8% in after-market trading following the earnings call. In the fiscal first quarter, the company generated revenues of $330.8 million, which beat the Zacks Consensus Estimate by 3%. The top line improved 15% from the prior-year quarter. As of April 30, 2025, the total number of Health Savings Accounts (HSAs) for which HealthEquity served as a non-bank custodian was 9.9 million, up 9% year over year. HealthEquity reported 770,000 HSAs with investments as of April 30, 2025, up 16% year over year. Total accounts, as of April 30, 2025, were 17.1 million, up 6.9% year over year. This uptick included total HSAs and 7.2 million Consumer Direct Benefits (CDBs), up 4.3% year over year. Total HSA assets were $31.3 billion at the end of April 30, 2025, up 15% year over year. This included $17.1 billion of HSA cash (up 7.5% year over year) and $14.2 billion of HSA investments (up 24.6% year over year). This figure compares to our fiscal first-quarter HSA cash and HSA investments projection of $18.3 billion and $13.5 billion, respectively. We had projected total HSA assets of $31.9 billion for the fiscal first quarter. Client-held funds, which are deposits held on behalf of HealthEquity's clients to facilitate the administration of its CDBs and from which the company generates custodial revenues, were $0.9 billion as of April 30, 2025. HealthEquity derives revenues from three sources: Service revenues, Custodial revenues, and Interchange revenues. Service revenues totaled $119.8 million in the quarter, up 1.3% year over year. This reflected a higher number of HSAs and invested HSA Assets. This figure compares favorably with our first-quarter projection of $121.9 million. Custodial revenues totaled $156.5 million, up 28.6% from the year-ago period. Our projection for the fiscal first-quarter Custodial revenues was $140.4 million. Interchange revenues totaled $54.6 million, up 14.4% year over year. This figure compares favorably with our fiscal first-quarter projection of $52 million. HealthEquity, Inc. price-consensus-eps-surprise-chart | HealthEquity, Inc. Quote In the quarter under review, HealthEquity's gross profit rose 19.9% to $224.3 million. The gross margin expanded 270 basis points (bps) to 67.8%. We had projected the gross margin to be 63.2% in the fiscal first quarter. Sales and marketing expenses rose 10.6% to $25.9 million year over year, whereas technology and development expenses climbed 9.5% year over year to $61.4 million. General and administrative expenses decreased 33.2% year over year to $25.5 million. Total operating expenses of $141.2 million decreased 2.9% year over year. Operating profit totaled $83.1 million, improving significantly by 99.6% from the prior-year quarter. The operating margin in the quarter expanded by a huge 1060 bps to 25.1% compared with the prior-year quarter. The company exited the first quarter of fiscal 2026 with cash and cash equivalents of $287.9 million compared with $295.9 million at the end of the fourth quarter of fiscal 2025. Total debt (net of issuance costs) at the end of first-quarter fiscal 2026 was $1.06 billion, flat compared with that at the end of fourth-quarter fiscal 2025. Net cash provided by operating activities at the end of first-quarter fiscal 2026 totaled $64.7 million compared with $65.4 million a year ago. HealthEquity has reiterated its revenue and updated its EPS projections for fiscal 2026. For fiscal 2026, revenues are projected to be between $1.285 billion and $1.305 billion. The Zacks Consensus Estimate is currently pegged at $1.30 billion. Adjusted EPS is now expected to be in the range of $3.61-$3.78 as compared with the previous guidance of $3.57-$3.74. The Zacks Consensus Estimate currently stands at $3.60. HealthEquity exited first-quarter fiscal 2026 with better-than-expected results. The company witnessed solid top-line and bottom-line performances in the reported quarter. Solid growth in HSAs also drove the top line. The solid uptick in total HSA assets in the reported quarter is promising. Significant improvement in the operating and gross margins also bodes well. The company added 150,000 new HSAs during the quarter and maintained strong enterprise pipeline momentum despite macroeconomic pressures. Per management, fraud-related costs dropped significantly from $11 million in the fourth quarter of fiscal 2025 to $3 million in the reported quarter, thanks to AI-powered tools and enhanced mobile security, boosting margins and member trust. Management raised full-year guidance and reiterated confidence in further margin normalization, growth from legislative tailwinds, and strong client retention, positioning HQY for sustained growth and operational strength. However, fraud-related costs, though significantly reduced, still stood at $3 million, which management acknowledged as still elevated. While this reflects major improvement from the prior quarter's $11 million, it highlights that fraud remains a lingering operational risk. Management is targeting to bring fraud costs down to 1 basis point of total HSA assets. Currently, HealthEquity carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader medical space that have announced quarterly results are CVS Health Corporation CVS, Integer Holdings Corporation ITGR and AngioDynamics ANGO. CVS Health, carrying a Zacks Rank of 2, reported first-quarter 2025 adjusted earnings per share (EPS) of $2.25, beating the Zacks Consensus Estimate by 31.6%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. CVS Health has a long-term estimated growth rate of 11.4%. Its earnings surpassed estimates in each of the trailing four quarters, with an average surprise of 18.1%. Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank of 1. Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR's earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%. AngioDynamics, currently sporting a Zacks Rank #1, reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 Composite's 10.5% growth. AngioDynamics' earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 70.9%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngioDynamics, Inc. (ANGO) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
CNBC
2 days ago
- Business
- CNBC
Health care is increasingly out of touch for most Americans: HealthEquity CEO Scott Cutler
Scott Cutler, HealthEquity CEO, joins 'Squawk Box' to discuss the company's quarterly earnings results, state of the HSA market, how the tax and spending bill in Congress would impact eligibility, implementation of AI, and more.
Yahoo
2 days ago
- Business
- Yahoo
HealthEquity (HQY) Surpasses Q1 Earnings and Revenue Estimates
HealthEquity (HQY) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 19.75%. A quarter ago, it was expected that this provider of services for managing health care accounts would post earnings of $0.71 per share when it actually produced earnings of $0.69, delivering a surprise of -2.82%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. HealthEquity , which belongs to the Zacks Medical Services industry, posted revenues of $330.84 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 3.03%. This compares to year-ago revenues of $287.6 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. HealthEquity shares have added about 7.2% since the beginning of the year versus the S&P 500's gain of 0.9%. While HealthEquity has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for HealthEquity: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.88 on $319.33 million in revenues for the coming quarter and $3.60 on $1.3 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, PACS Group, Inc. (PACS), is yet to report results for the quarter ended March 2025. This company is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of +10.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. PACS Group, Inc.'s revenues are expected to be $1.09 billion, up 16.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HealthEquity, Inc. (HQY) : Free Stock Analysis Report PACS Group, Inc. (PACS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
HealthEquity (HQY) Reports Q1 Earnings: What Key Metrics Have to Say
HealthEquity (HQY) reported $330.84 million in revenue for the quarter ended April 2025, representing a year-over-year increase of 15%. EPS of $0.97 for the same period compares to $0.80 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $321.13 million, representing a surprise of +3.03%. The company delivered an EPS surprise of +19.75%, with the consensus EPS estimate being $0.81. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how HealthEquity performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total HSA Assets: $31.27 billion versus the three-analyst average estimate of $32.13 billion. Total HSA investments: $14.21 billion versus the three-analyst average estimate of $14.46 billion. CDBs Accounts: 7.17 million versus the three-analyst average estimate of 6.86 million. Total Accounts: 17.06 million versus 16.92 million estimated by three analysts on average. Total HSA cash: $17.07 billion compared to the $17.67 billion average estimate based on three analysts. HSAs Accounts: 9.89 million compared to the 10.05 million average estimate based on three analysts. Revenue- Service: $119.78 million versus the four-analyst average estimate of $119.18 million. The reported number represents a year-over-year change of +1.3%. Revenue- Custodial: $156.46 million versus $151.45 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +28.6% change. Revenue- Interchange: $54.61 million compared to the $49.71 million average estimate based on four analysts. The reported number represents a change of +14.4% year over year. View all Key Company Metrics for HealthEquity here>>>Shares of HealthEquity have returned +12.5% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HealthEquity, Inc. (HQY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
