Research Desk Line-up: Streamline Health Solutions Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 25, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on HealthEquity, Inc. (NASDAQ: HQY), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=HQY, following the Company's reporting of its financial results on September 05, 2017, for the second quarter fiscal 2018. The Company's total revenue increased 28.7% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Healthcare Information Services industry. Pro-TD has currently selected Streamline Health Solutions, Inc. (NASDAQ: STRM) for due-diligence and potential coverage as the Company announced on September 13, 2017, its financial results for Q2 and the first half of FY17 which ended on July 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Streamline Health Solutions when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HQY; also brushing on STRM. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=HQY

http://protraderdaily.com/optin/?symbol=STRM

Earnings Reviewed

For three months ended July 31, 2017, HealthEquity's total revenue increased 28.7% to $56.88 million from $44.19 million in Q2 FY17. Total revenue surpassed analysts' expectations of $56.0 million.

For the reported quarter, the Company's service revenue increased 21% to $22.81 million from $18.84 million in Q2 FY17. The increase was due to year-on-year increase in average health savings account. During Q2 FY18, HealthEquity's custodial revenue increased 44% to $21.29 million from $14.78 million in the same period last year. The increase was due to higher average daily cash AUM. For the reported quarter, the Company's interchange revenue increased 21% to $12.79 million from $10.57 million in Q2 FY17. The increase was due to growing card spending and more favorable interchange terms.

During Q2 FY18, the Company's gross profit increased 25.3% to $35.80 million from $28.55 million in the same period last year. For the reported quarter, the Company's gross margin decreased 170 basis points to 62.9% of revenue from 64.6% of revenue in Q2 FY17.

For the reported quarter, HealthEquity's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 29.8% to $23.94 million from $18.43 million in Q2 FY17. During Q2 FY18, the Company's adjusted EBITDA margin increased 40 basis points to 42.1% of revenue from 41.7% of revenue in Q2 FY17.

For the reported quarter, HealthEquity's sales and marketing (S&M) expenses increased 31% to $5.19 million from $4.19 million in Q2 FY17. During Q2 FY18, the Company's general and administrative (G&A) expenses increased 12.2% to $6.23 million from $5.55 million in Q2 FY17. For the reported quarter, the Company's T&D expenses increased 36.2% to $6.80 million from $4.99 million in Q2 FY17. During Q2 FY18, the Company's total operating expenses increased 22% to $19.31 million from $15.82 million in Q2 FY17.

During Q2 FY18, HealthEquity's operating income increased 29.5% to $16.50 million from $12.74 million in Q2 FY17. During Q2 FY18, the Company's operating margin decreased 40 basis points to 28.4% of revenue from 28.8% of revenue in Q2 FY17.

During Q2 FY18, HealthEquity's net income increased 105.9% to $16.95 million on a y-o-y basis from $8.23 million in Q2 FY17. During Q2 FY18, HealthEquity's diluted EPS increased 92.8% to $0.27 on a y-o-y basis from $0.14 in Q2 FY17. For the reported quarter, the Company's adjusted diluted EPS was $0.21. The diluted EPS surpassed analysts' expectations of $0.14.

Operating Metrics

For the reported quarter, HealthEquity's number of HSA members increased 26% to 2.90 million from 2.30 million in Q2 FY17. During Q2 FY18, the Company's total custodial assets increased 28% to $5.37 million from $4.20 million in Q2 FY17.

Balance Sheet

As on July 31, 2017, HealthEquity's cash and cash equivalents increased 21.3% to $169.72 million from $139.95 million in Q4 FY17.

For the reported quarter, the Company's inventories decreased 42.7% to $339,000 from $592,000 in Q4 FY17. During Q2 FY18, the Company's marketable securities increased 42 basis points to $40.58 million from $40.41 million in Q4 FY17.

For the reported quarter, HealthEquity's accounts payable decreased 50.6% to $1.59 million from $3.22 million in Q4 FY17.

During H1 FY18, the Company's cash provided by operating activities increased 155.8% to $39.76 million from $15.54 million in H1 FY17.

Outlook

For FY18, HealthEquity expects total revenue to be in the range of $223 million to $228 million and net income to be in the range of $41 million to $45 million.

The Company estimates adjusted EBITDA to be in the range of $79 million to $84 million and adjusted diluted EPS to be in the range of $0.64 to $0.68 for fiscal 2018.

Stock Performance

On Friday, September 22, 2017, the stock closed the trading session at $47.35, falling 1.25% from its previous closing price of $47.95. A total volume of 692.38 thousand shares have exchanged hands, which was higher than the 3-month average volume of 560.36 thousand shares. HealthEquity's stock price rallied 11.44% in the last one month, 17.20% in the past six months, and 26.27% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 16.86%. The stock is trading at a PE ratio of 70.67 and currently has a market cap of $2.91 billion.

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