Earnings To Watch: Health Catalyst (HCAT) Reports Q4 Results Tomorrow

Jabin Bastian /
2023/02/27 4:43 am EST

Healthcare software provider Health Catalyst (NASDAQ:HCAT) will be reporting results tomorrow after the bell. Here's what to look for.

Last quarter Health Catalyst reported revenues of $68.4 million, up 10.7% year on year, beating analyst revenue expectations by 2.34%. It was a weak quarter for the company, with a decline in gross margin and underwhelming revenue guidance for the next quarter.

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 5.47% year on year to $68.3 million, slowing down from the 21.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 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 2.61%.

Looking at Health Catalyst's peers in the data analytics segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Amplitude delivered top-line growth of 32% year on year, beating analyst estimates by 2.63% and Alteryx reported revenues up 73.2% year on year, exceeding estimates by 7.79%. Amplitude traded flat on the results, Alteryx was up 9.24%. Read our full analysis of Amplitude's results here and Alteryx's results here.

Investors in the segment have had steady hands going into the earnings, with the stocks up on average 0.93% over the last month. Health Catalyst is down 3.27% during the same time, and is heading into the earnings with analyst price target of $13.6, compared to share price of $13.03.

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.