This Billion-Dollar Company Lost 40% Of Its Value, This Is What Wall Street Is Saying
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.
Latest Ratings for HCAT
Date | Firm | Action | From | To |
---|---|---|---|---|
Mar 2022 | Piper Sandler | Maintains | Overweight | |
Mar 2022 | Raymond James | Maintains | Strong Buy | |
Mar 2022 | Canaccord Genuity | Maintains | Buy |
View More Analyst Ratings for HCAT
View the Latest Analyst Ratings
See more from Benzinga
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.