What To Expect From Health Catalyst's (HCAT) Q1 Earnings

Max Juang /
2024/05/08 3:03 am EDT

Healthcare software provider Health Catalyst (NASDAQ:HCAT) will be announcing earnings results tomorrow afternoon. Here's what to expect.

Health Catalyst beat analysts' revenue expectations by 2% last quarter, reporting revenues of $75.08 million, up 8.6% year on year. It was a weak quarter for the company, with management forecasting growth to slow and underwhelming revenue guidance for the next quarter.

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 1.3% year on year to $74.81 million, slowing from the 8.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

Health Catalyst Total Revenue

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 a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 1.9% on average.

Looking at Health Catalyst's peers in the data and analytics software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Palantir delivered year-on-year revenue growth of 20.8%, beating analysts' expectations by 2.7%, and Confluent reported revenues up 24.6%, topping estimates by 2.5%. Palantir traded down 15.1% following the results.

Read our full analysis of Palantir's results here and Confluent's results here.

Growth stocks have been quite volatile since the start of 2024, and while some of the data and analytics software stocks have fared somewhat better, they have not been spared, with share prices down 2.6% on average over the last month. Health Catalyst is up 1.4% during the same time and is heading into earnings with an average analyst price target of $11.9 (compared to the current share price of $6.77).

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