Stock Monitor: Streamline Health Solutions Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 04, 2018 / Active-Investors.com has just released a free earnings report on HealthEquity, Inc. (NASDAQ: HQY). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HQY. The Company reported its third quarter fiscal 2018 operating results on December 05, 2017. The United States' largest health savings account (HSA) non-bank custodian surpassed top- and bottom-line expectations and also raised its guidance for the fiscal year.Register today and get access to over 1000 Free Research Reports by joining our site below:
Active-Investors.com is currently working on the research report for Streamline Health Solutions, Inc. (NASDAQ: STRM), which also belongs to the Technology sector as the Company HealthEquity. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, HealthEquity most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the three months ended October 31, 2017, HealthEquity's revenue surged 31% to $56.79 million compared to $43.4 million for the third quarter ended October 31, 2016. The Company's revenue numbers exceeded analysts' estimates of $55.6 million.
During Q3 FY18, HealthEquity's Service revenue advanced 22% to $22.96 million compared to $18.78 million in Q3 FY17. However, Service revenue as a percentage of total revenue declined to 40% in the reported quarter, down from 43% of total revenue in the year ago same period, as the custodial revenue stream became more predominant.
The Company's Custodial revenue soared 48% to $22.11 million in the reported quarter versus $14.97 million in the year earlier comparable quarter. The Custodial revenue growth was fueled by a 24% growth in average custodial cash for the reported quarter, combined with the higher annualized interest rate yield on custodial cash of 1.85% during Q3 FY18 compared to 1.57% in Q3 FY17.
For Q3 FY18, HealthEquity's Interchange revenue of $11.7 million reflected a growth of 22% compared to $9.61 million in Q3 FY17.
HealthEquity's net income was $10.5 million for Q3 FY18 compared to $6.0 million for Q3 FY17. The Company's net income per diluted share was $0.17 for the reported quarter, up 70% compared to $0.10 for the year earlier corresponding quarter, and was ahead of Wall Street's estimates of $0.13 per share.
HealthEquity's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $21.2 million for Q3 FY18, reflecting an increase of 46% compared to $14.5 million for Q3 FY17. The Company's adjusted EBITDA margin was 37% in the reported quarter.
As of October 31, 2017, HealthEquity had $225 million of cash, cash equivalents, and marketable securities with no outstanding debt.
HSA Member and Custodial Asset Metrics
HealthEquity added more than 740,000 new HSAs and $1.3 billion in Custodial Assets since the end of Q3 FY17, as the Company added more than 123,000 HSAs in the reported quarter, including 14,000 from First Interstate Bank.
As of October 31, 2017, HealthEquity's total number of HSAs for which the Company serves as a non-bank custodian (HSA Members) was 3.0 million, an increase of 27% from 2.4 million as of October 31, 2016. As of October 31, 2017, the Company's total Custodial Assets were $5.6 billion, an increase of 30% on a y-o-y basis. HealthEquity's Custodial Cash Assets totaled $4.6 billion, an increase of 24% compared to Q3 FY17; while Custodial Investment Assets were $1.0 billion, an increase of 73% compared to Q3 FY17. Invested Assets accounted for 18% of Custodial Assets at the end of the reported quarter, the most in the Company's history.
HealthEquity raised its business outlook for the year ended January 31, 2018. The Company narrowed its revenue outlook from a range of between $223.0 million and $228.0 million, to a band of between $225.0 million and $228.0 million; net income from a range of between $41.0 million and $45.0 million to a band of between $43.0 million and $45.0 million; adjusted EBITDA from a range of between $79.0 million and $84.0 million to a band of between $80.0 million and $83.0 million.
HealthEquity is projecting non-GAAP net income to be in the range of $39.0 million and $41.0 million for FY18, narrowed from the Company's prior band of between $39.0 million and $43.0 million. HealthEquity's outlook also resulted in a non-GAAP net income per diluted share range of between $0.64 and $0.66, narrowed from its prior band of between $0.64 and $0.68.
Stock Performance Snapshot
January 03, 2018 - At Wednesday's closing bell, HealthEquity's stock climbed 1.74%, ending the trading session at $47.28.
Volume traded for the day: 508.85 thousand shares, which was above the 3-month average volume of 481.20 thousand shares.
Stock performance in the last twelve-month period – up 17.64%; and year-to-date – up 1.33%
After yesterday's close, HealthEquity's market cap was at $2.91 billion.
Price to Earnings (P/E) ratio was at 63.63.
The stock is part of the Technology sector, categorized under the Healthcare Information Services industry. This sector was up 0.8% at the end of the session.
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