Retirement Planning Archives - INO.com Traders Blog

HealthEquity - Continued Double-Digit Revenue Growth

Posted on January 8, 2018January 11, 2018 by Noah Kiedrowski

Introduction

I’ve written a handful of articles highlighting HealthEquity Inc. (NASDAQ:HQY) in 2017 as a great growth play in the rapidly growing Health Savings Accounts (HSAs) space. HealthEquity just reported beats on both the top and bottom line, beating revenue and EPS estimates by $1.39 million and $0.04, respectively. It’s noteworthy to point out that revenue was up 30% year-over-year for its Q3 FY18 quarter. HealthEquity is a major player in the HSA secular growth market and has continued to gain market share over the years. HealthEquity has posted annual revenue growth of 42%, 44%, and 41% when comparing FY14 to FY15, FY15 to FY16 and FY16 to FY17, respectively. If consensus estimates are accurate for FY18, revenue growth will come in at 27% when comparing FY17 to FY18 (Figure 1). The sustainability of this growth will likely move in lock-step with the growth in the HSA market in addition to optimizing revenues extracted from the investments within these accounts via offering investment advising, collecting fees from the investment line-up and its newly announced 401k with paired HSA offerings. I feel that HealthEquity will continue to post strong growth as it services the double-digit HSA growth market and manages more assets and investments within these accounts. As HealthEquity rolls out additional products such as the launch of its 401k offerings paired with HSA accounts, HSA members elect to invest money within these accounts and accounts age; revenue will continue to accelerate with stock appreciation.

Figure 1 – Fiscal year-over-year growth in revenue, number of HSA accounts and custodial assets
Continue reading "HealthEquity - Continued Double-Digit Revenue Growth" →

HealthEquity Strikes Again

Posted on September 23, 2017September 22, 2017 by Noah Kiedrowski

HealthEquity – Delivering Robust Numbers

I highlighted HealthEquity Inc. (NASDAQ:HQY) earlier this year as a great growth play in the ever-expanding Health Savings Accounts (HSAs) space. HealthEquity just reported big beats on both the top and bottom line, posting 28.8% year-over-year growth in revenue. HealthEquity’s IPO was in 2014, and since then the stock has returned 160% moving from ~$17 to currently ~$43 and touching $55 earlier this year. HealthEquity has been riding this secular growth market since its IPO and based on its recent string of earnings; the company is continuing this performance. Over the four quarters including the most recent earnings announcement, HealthEquity has beaten on both EPS and revenue while posting double-digit growth. HealthEquity posted annual revenue growth of 44% when comparing FY2016 to FY2017. The company has already posted robust revenue growth of 56% when comparing 1H2017 to 1H2018 (Figure 1). The sustainability of this growth will likely move in lock-step with the growth in the HSA market while optimizing revenues extracted from the investments within these accounts via offering investment advising, collecting fees from the investment line-up and its newly announced 401k with paired HSA offerings. I feel that HealthEquity will continue to post strong growth as it services the double-digit HSA growth market and manages more assets and investments within these accounts. As HealthEquity rolls out additional products such as the launch of its own 401k offerings paired with HSA accounts, revenue will continue to accelerate.

HQY Quarterly Revenue Growth
Figure 1 – Previous quarterly earnings for HealthEquity, posting double-digit growth

HealthEquity’s Q2 Earnings and Future Growth

HealthEquity reported another great quarter and the stock responded by appreciating by 12% after opening the next morning, jumping from $42 to $47. HealthEquity reported EPS of $0.21 and revenue of $56.9 million compared to last quarter with EPS of $0.23 and revenue of $55.4 million. These EPS and revenue figures beat estimates by $0.06 per share and $1.24 million with the latter revenue figure posting 28.8% year-over-year growth. Continue reading "HealthEquity Strikes Again" →

HealthEquity Crushes Earnings - Shares Rise 10%

Posted on June 9, 2017June 9, 2017 by Noah Kiedrowski

HealthEquity – The HSA Play

I first highlighted HealthEquity Inc. (NASDAQ:HQY) last month as a great growth play in the ever expanding Health Savings Accounts (HSAs) space when the stock was trading at $42 per share. HealthEquity just reported blowout numbers that beat on both the top and bottom line, posting 25.9% year-over-year growth in revenue and now trading at $53 per share or 26% appreciation in stock price. Briefly, HealthEquity’s IPO was in 2014 and since then the stock has returned 210% moving from ~$17 to currently ~$53 (Figure 1). HealthEquity has been riding this secular growth market since its IPO and looks to be continuing this performance. Over the four quarters including the most recent earnings announcement, HealthEquity has beaten on both EPS and revenue while posting double-digit growth (Figure 2). Revenue came in at the following: Q2 - $44.2M (45.0% growth), Q3 - $43.3M (42.0% growth), Q4 - $46.81M (30.4% growth). The sustainability of this growth will likely move in lock-step with the growth in the HSA market while optimizing revenues extracted from the investments within these accounts via offering investment advising, collecting fees from the investment line-up and its newly announced 401k with paired HSA offerings.

Figure 1 – HealthEquity’s performance since its IPO in 2014
Continue reading "HealthEquity Crushes Earnings - Shares Rise 10%" →

ETF's For Those In Their 50's

Posted on May 2, 2017May 1, 2017 by Matt Thalman

So you are now just a decade or so from retirement and don’t want another 2008 market crash to wipe out our nest egg, forcing you to work for longer than you are planning. Finding safe investment options is a goal, but at the same time you don’t want to be too conservative because you do need to continue realizing capital appreciation so your nest egg can support you during your 'golden years'.

The balance between safety and growth is more difficult than one may think. If you get too safe, the growth will lag and you may not have a large enough retirement account. If you get too focused on growth, you may be taking on more risk than you should, which could leave you vulnerable to a big market crash.

While Exchange Traded Funds offer diversity, I personally don’t like very many of the mixed portfolio options available today (a fund that holds a combination of investment options such as stocks, bonds, RIETS, MLP's, currency, futures, etc.) and especially don’t like the 'age based target funds' offer through many 401(k) plans and other mutual fund companies. Now I want to make it clear I am always a proponent of a well-diversified portfolio and I believe that idea holds true more so for those in this age group than investors who are younger.

With that being said, investors in their 50's should be thinking more about buying a few different ETF's, as opposed to the one-stop shops. I have found that the one-stop shop ETF's typically tend to be either too conservative or too aggressive and this causes them dramatically trail the market returns or be way too exposed to a market pull-back. Continue reading "ETF's For Those In Their 50's" →

HealthEquity - A Play On The Double-Digit Growth HSA Market

Posted on April 14, 2017April 17, 2017 by Noah Kiedrowski

The Double-Digit Annual Growth Market

Devenir, an investment solutions company for Health Savings Accounts (HSAs), released a survey, which showed HSAs have grown to an estimated $34.7 billion in assets and 18.2 million accounts for the period ending June 30, 2016. Even more, the popularity of HSAs has increased substantially over the past decade. As of 2014, 17.4 million people were enrolled in HDHP/HSA compared to a mere 3.2 million in 2006. These findings reinforce a consistent growth trend for health spending accounts and a shift toward the consumer taking control over their healthcare spending (Figure 1).

“We are seeing consistent growth in new HSA accounts at a growth rate in excess of 20 percent year over year and we expect that to continue for the next couple of years,” Jon Robb at Devenir.

Key findings from the Devenir 2016 HSA Survey include: Continue reading "HealthEquity - A Play On The Double-Digit Growth HSA Market" →