HealthEquity (HQY) stock soared after hours after the firm posted a big earnings beat for the third quarter of fiscal 2020. The health savings account (HSA) provider also raised its outlook.
HealthEquity earnings per share jumped 52% to 47 cents, which was handily beat analyst expectations for an EPS decline to 22 cents. A 123% revenue increase to $157 million above estimates of $152 million.
The firm now has a total of 5 million HSAs, a 37% increase. The amount of total HSA Assets rose 48% to $10.5 billion.
The firm raised its full year EPS outlook to $1.46-$1.52, up from a prior view of $1.10-$1.16 and above the consensus for $1.33.
HealthEquity completed its acquisition of WageWorks on Aug. 30, and management said it has achieved an annual run-rate of approximately $15 million net synergies since then.
The company now expects to reach its goal of a run rate of $50 million of net synergies by the end of fiscal 2021, earlier than the 24-36 months from closing previously anticipated.
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