HealthEquity Inc. shares declined 7.6% in pre-market trading on Tuesday after the health savings account provider reported fiscal second-quarter results that exceeded analyst expectations.
The company posted revenue of $350.7 million for the quarter, an 8% increase from the same period last year and above the $349.22 million consensus estimate among analysts. Non-GAAP net income per diluted share rose 15% year-over-year to $1.24, matching the prior quarter’s figure and surpassing the $1.19 forecast. Adjusted EBITDA margin reached a record 48%, while the number of HSA accounts grew to 10.7 million, and total HSA assets approached $38 billion.
HealthEquity also returned $108.1 million to shareholders through stock repurchases during the quarter. CEO Scott Cutler emphasized the company’s record operational metrics in a statement accompanying the results.
Analysts had set a 12-month average price target of $118.53 for the stock, with 15 buy ratings and no sell recommendations. HealthEquity’s shares were nearing their 52-week high of $107.62 ahead of the report.
The broader market showed strength during the session, with the NASDAQ up 0.8% and the S&P 500 gaining 0.3%. However, Treasury yields rose in the prior session following higher-than-expected annual PCE inflation data, with headline growth at 3.7% and core growth at 3.3%, contributing to pressure on growth-oriented equities.
