Health Catalyst (HCAT) Q4 Earnings Report Preview: What To Look For

Jabin Bastian /
2022/02/28 7:08 am EST
Add to Watchlist

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

Last quarter Health Catalyst reported revenues of $61.7 million, up 30.8% year on year, beating analyst revenue expectations by 1.5%. It was a mixed quarter for the company, with a strong top line growth but a decline in gross margin and in-line guidance.

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 18.5% year on year to $63.1 million, slowing down from the 22.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.21 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 3.32%.

Looking at Health Catalyst's peers in the data and analytics software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Palantir (NYSE:PLTR) delivered top-line growth of 34.3% year on year, beating analyst estimates by 3.54% and Amplitude (NASDAQ:AMPL) reported revenues up 75.1% year on year, exceeding estimates by 5.26%. Palantir traded down 21.1% on the results, Amplitude was down 58.9%. Read our full analysis of Palantir's results here and Amplitude's results here.

Technology stocks have been hit hard on fears of higher interest rates and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.13% over the last month. Health Catalyst is down 7.7% during the same time, and is heading into the earnings with analyst price target of $62.5, compared to share price of $27.55.

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.