HealthEquity stock dropped 15% after earnings disappointment

HealthEquity's stock has fallen by nearly 15% this week following a disappointing earnings report. The health savings account (HSA) company announced its fourth-quarter and full-year results for fiscal 2024 after the market closed on Tuesday. In the report, HealthEquity reported earnings of $311.8 million for the quarter ending January 31, a 19% increase from the previous year. Adjusted net income grew by 11% to $61.3 million, equating to $0.69 per share. While these figures beat analysts' expectations for revenue, they fell short of the profit estimates. Management credited the company's growth to a record addition of 1 million new HSAs over the fiscal year, bringing the total to 9.9 million. Total HSA assets also climbed to $32.1 billion, marking a 27% increase from fiscal 2023. Looking ahead, HealthEquity provided guidance for fiscal 2025, forecasting revenue between $1.28 billion and $1.305 billion. This is only a 9% increase from the previous year, which disappointed some analysts who expected higher growth. The projected adjusted net income is between $318 million and $333 million. Overall, while HealthEquity operates in a promising market, concerns about slower revenue growth could affect investor confidence moving forward.