Earnings Outlook For HealthEquity
On Monday, February 08, HealthEquity (NASDAQ:HQY) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
HealthEquity EPS will likely be near $0.33 while revenue will be around $184.35 million, according to analysts. HealthEquity EPS in the same period a year ago totaled $0.39. Sales were $201.20 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to report earnings in line when it publishes results Monday, quarterly profit would be down 15.38%. Revenue would be down 8.37% from the year-ago period. Here is how the HealthEquity's reported EPS has stacked up against analyst estimates in the past:
EPS Estimate | 0.36 | 0.27 | 0.44 | 0.35 |
EPS Actual | 0.41 | 0.42 | 0.43 | 0.39 |
Revenue Estimate | 176.78 M | 171.28 M | 193.32 M | 199.26 M |
Revenue Actual | 179.35 M | 176.04 M | 190.01 M | 201.20 M |
Stock Performance
For a full 12 months, the return has risen by 17.55%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.
Do not be surprised to see the stock move on comments made during its conference call. HealthEquity is scheduled to hold the call at 16:30:00 ET and can be accessed here.
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