Healthcare software provider Health Catalyst (NASDAQ:HCAT) will be reporting results tomorrow after market hours. Here’s what you need to know.
Health Catalyst met analysts’ revenue expectations last quarter, reporting revenues of $76.35 million, up 3.5% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations.
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 6% year on year to $79.57 million, slowing from the 8.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Health Catalyst has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Health Catalyst’s peers in the data and analytics software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Palantir delivered year-on-year revenue growth of 36%, beating analysts’ expectations by 6.8%, and Amplitude reported revenues up 9.4%, topping estimates by 1.9%. Palantir traded up 23.7% following the results while Amplitude was also up 21.8%.
Read our full analysis of Palantir’s results here and Amplitude’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the data and analytics software stocks have shown solid performance, the group has generally underperformed, with share prices down 4.8% on average over the last month. Health Catalyst is down 13.2% during the same time and is heading into earnings with an average analyst price target of $9.79 (compared to the current share price of $4.93).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
