HealthEquity Earnings: HQY Stock Drops 5% on Weak Outlook

HealthEquity (NASDAQ:HQY) earnings for fiscal fourth quarter of 2020 have HQY stock down after markets closed Monday. This comes after the health savings company reported adjusted earnings per share (EPS) of 39 cents on revenue of $201.2 million. These are both better than Wall Street’s estimates of 35 cents per share and revenue of $199.26 million.

HealthEquity Earnings: HQY Stock Drops 5% on Weak Outlook

Source: KUMOHD/

Let’s take a more thorough look at the most recent HealthEquity earnings report below.

  • Adjusted per-share earnings for the quarter are 30% higher compared to 30 cents in fiscal Q4 2019.
  • Revenue comes in 165.51% above the $75.78 million reported during the same time last year.
  • Operating income of $14.54 million is a 12.3% drop year-over-year from $16.58 million.
  • The HealthEquity earnings report also includes a net loss of $190,000.
  • That’s worse off than the company’s net income of $13.12 million in the same period of the year prior.

Jon Kessler, president and CEO of HealthEquity, said this about the HQY stock earnings:

“The HealthEquity team delivered a strong fourth quarter to cap another record-setting year of growth in fiscal 2020, while also accelerating the WageWorks integration. Revenue for the full year increased 85% to $532 million, while driving Adjusted EBITDA growth 66% to $196 million — both record highs.”

The HealthEquity earnings report also includes its outlook for the full year of 2021. This has it expecting adjusted EPS between $1.70 and $1.81 on revenue of $770 million to $790 million. Wall Street’s estimates are for adjusted EPS of $1.80 on revenue of $821.49 million.

HQY stock was down 4.5% after-hours Monday. The stock closed out the day down 18.2%.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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