Health Catalyst (HCAT) Reports Q2: Everything You Need To Know Ahead Of Earnings

Adam Hejl /
2022/08/03 4:18 am EDT
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Healthcare software provider Health Catalyst (NASDAQ:HCAT) will be reporting earnings tomorrow after the bell. Here's what to expect.

Last quarter Health Catalyst reported revenues of $68 million, up 21.9% year on year, beating analyst revenue expectations by 3.13%. It was a mixed quarter for the company, with a significant improvement in gross margin but an 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 17.1% year on year to $69.8 million, slowing down from the 37.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 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 3.22%.

Looking at Health Catalyst's peers in the data and analytics software segment, only Commvault Systems has so far reported results, delivering top-line growth of 7.93% year on year, and beating analyst estimates by 1.41%. The stock traded flat on the results. Read our full analysis of Commvault Systems's earnings results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.79% over the last month. Health Catalyst is up 8.09% during the same time, and is heading into the earnings with analyst price target of $24.6, compared to share price of $17.63.

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.