Healthcare software provider Health Catalyst (NASDAQ: HCAT) will be reporting earnings tomorrow afternoon. Here’s what to look for.
Health Catalyst beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $75.9 million, up 3.7% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a decline in its gross margin.
Is Health Catalyst a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Health Catalyst’s revenue to grow 3.6% year on year to $76.45 million, slowing from the 7.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Health Catalyst has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.
Looking at Health Catalyst’s peers in the data and analytics software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Palantir delivered year-on-year revenue growth of 30%, beating analysts’ expectations by 3.1%, and MicroStrategy reported a revenue decline of 10.3%, falling short of estimates by 4.4%. MicroStrategy’s stock price was unchanged following the results.
Read our full analysis of Palantir’s results here and MicroStrategy’s results here.
There has been positive sentiment among investors in the data and analytics software segment, with share prices up 5.8% on average over the last month. Health Catalyst is down 3.5% during the same time and is heading into earnings with an average analyst price target of $11.17 (compared to the current share price of $7.35).
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