UPDATE: HealthEquity (HQY) Tops Q4 EPS by 2c, Beats on Revenues; Offers FY19 EPS Outlook Above Consensus, FY19 Revenue Mid-Point Guidance Above Consensus

Note: EPS may not be comparable

HealthEquity (NASDAQ: HQY) reported Q4 EPS of $0.11, $0.02 better than the analyst estimate of $0.09. Revenue for the quarter came in at $60.4 million versus the consensus estimate of $58.2 million.

Highlights of the fourth quarter include:

• Revenue of $60.4 million, an increase of 29% compared to Q4 FY17.
• Net income of $5.9 million, an increase of 45% compared to Q4 FY17.
• Net income per diluted share of $0.09, compared to $0.07 in Q4 FY17.
• Adjusted EBITDA of $17.1 million, an increase of 45% compared to Q4 FY17.

Business outlook

For the year ending January 31, 2019, we expect our revenue to be between $276.0 million and $282.0 million. Our outlook for net income is a range of $47.0 million to $51.0 million, resulting in a net income per diluted share range of $0.74 to $0.80. Our Adjusted EBITDA outlook is a range of $106.0 million to $111.0 million. We also expect our non-GAAP net income to be in a range between $63.0 million and $67.0 million. Our non-GAAP net income is calculated by adding back to net income all non-cash stock-based compensation expense, net of an estimated statutory tax rate of 24%, and the impact of excess tax benefits due to the adoption of Accounting Standards Updated ("ASU") 2016-09. Our non-GAAP net income outlook results in a non-GAAP net income per diluted share range between $0.98 to $1.04 (based on an estimated 64.0 million weighted-average shares outstanding).

GUIDANCE:

HealthEquity sees FY2019 EPS of $0.98-$1.04, versus the consensus of $0.94. HealthEquity sees FY2019 revenue of $276-282 million, versus the consensus of $277.8 million.

For earnings history and earnings-related data on HealthEquity (HQY) click here.

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