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Yesterday after the market close, Health Catalyst Inc (NASDAQ: HCAT) reported Q2 earnings. Shares have dropped over 30% after the news.
SVB Leerink notes a mild Q2 beat on Tech outperformance and FY22 guidance lowered on macro headwinds.
The company reported Q2 sales of $70.3 million, 18.5% Y/Y, which slightly beat the estimates of $69.87 million.
FY22 guidance was cut by ~$17 million at the midpoint, with management pointing to the challenging macro environment and its impact on hospital clients and bookings.
Health Catalyst forecasts Q3 revenue of $65.3-$68.3 million vs. the consensus of $74.61 million and an adjusted EBITDA loss of $(6)-$(4) million.
FY22 revenues are expected to be $271.5-$275.5 million vs. the Wall Street consensus of $290.98 million.
Separately, HCAT announced a $40 million share repurchase program (representing 2M shares/4% of shares outstanding at the current share price), following in the recent footsteps of other high-growth health tech peers e.g., DOCS, OPRX, etc.
According to SVB Leerink, a negative stock price reaction is expected despite the low bar going into the print (HCAT -54% YTD vs. HCIT -23% on an average).
Stifel downgraded Health Catalyst to Hold from Buy with a price target of $16, down from $27.
JP Morgan downgrades the stock from Overweight to Neutral and lowers the price target from $20 to $16.
Price Action: HCAT shares are down 36.90% at $11.53 during the market session on the last check Friday.
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