What happened
Shares of HealthEquity (HQY -1.00%) were up more than 13% Tuesday morning after the healthcare services company reported earnings after the markets closed on Monday. The stock is up more than 9% so far this year and climbed to as high as $67.78 in the morning.
So what
HealthEquity is the largest health savings account (HSA) custodian company in the U.S. The stock rose after the company reported first-quarter revenue of $244.4 million, up 19% year over year, and said it had net income of $4.1 million, compared to a loss of $13.6 million in the same period a year ago. HealthEquity also said it had earnings per share (EPS) of $0.05 compared to an EPS loss of $0.16 in the same period a year ago.
On the company's first-quarter earnings call, CEO John Kessler cited recent acquisitions and growth in accounts and assets for the improved numbers.
Now what
The key for HealthEquity's growth is that it keeps adding members, including 134,000 new HSA members in the quarter. The company saw revenue decline during the pandemic, but now as companies ramp up hiring, HealthEquity is in a good place again. The company said it has 15 million accounts, including 8 million HSAs and 7 million other consumer-directed benefits accounts, up 4% year over year.
In its guidance, HealthEquity said it expects 2023 revenue between $975 million and $985 million, compared to $861.7 million in 2022, and 2023 net income between $9 million and $14 million, compared to a net loss of $26.1 million in 2022.
Among analysts, the company has an average price target of $73.25 with a high of $85 and a low of $62.
