Earnings To Watch: Health Catalyst (HCAT) Reports Q3 Results Tomorrow

Radek Strnad /
2022/11/07 2:30 am EST

Healthcare software provider Health Catalyst (NASDAQ:HCAT) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter Health Catalyst reported revenues of $70.6 million, up 18.4% year on year, beating analyst revenue expectations by 1.08%. It was a weak quarter for the company, with revenue guidance for both  he next quarter and full year missing analysts' expectations.

Is Health Catalyst buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Health Catalyst's revenue to grow 8.18% year on year to $66.8 million, slowing down from the 30.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.19 per share.

Health Catalyst Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.04%.

Looking at Health Catalyst's peers in the data and analytics software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Amplitude delivered top-line growth of 35.4% year on year, beating analyst estimates by 2.36% and Alteryx reported revenues up 74.6% year on year, exceeding estimates by 12.1%. Amplitude traded down 1.13% on the results, Alteryx was up 10.10%. Read our full analysis of Amplitude's results here and Alteryx's results here.

The technology sell-off has been putting pressure on stocks since November and while some of the data and analytics software stocks have fared somewhat better, they have not been spared, with share price declining 5.91% over the last month. Health Catalyst is down 24.7% during the same time, and is heading into the earnings with analyst price target of $15.90, compared to share price of $7.06.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.