## HealthStream (HSTM) Earnings Preview: What to Expect on October 21st
Get ready for a crucial week for HealthStream Inc. (HSTM) investors. The company is poised to announce its quarterly earnings on Monday, October 21st, and the market is holding its breath. Analysts are predicting an earnings per share (EPS) of $0.12, but the real excitement lies in whether HealthStream can exceed expectations and deliver positive guidance for the coming quarter.
Past Performance and Investor Sentiment
Before diving into the upcoming announcement, it’s essential to review HealthStream’s past performance. In the last quarter, the company beat EPS by $0.04, but this was followed by a 4.04% drop in share price the next day. This highlights the potential volatility in the stock, particularly after earnings releases.
Here’s a quick look at HealthStream’s recent earnings history and the resulting price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 0.12 | 0.16 | -4.0% |
| Q1 2024 | 0.11 | 0.17 | 10.0% |
| Q4 2023 | 0.10 | 0.15 | -2.0% |
| Q3 2023 | 0.09 | 0.13 | 15.0% |
With shares currently trading at $28.93 and a 52-week high of 30.86%, long-term shareholders are likely optimistic about this upcoming earnings release.
Analyst Perspective: What Do They See for HealthStream?
For investors, staying informed about market sentiment and industry expectations is crucial. HealthStream has received a total of 1 rating from analysts, with a consensus rating of Neutral. The average one-year price target is $28.0, suggesting a potential 3.21% downside.
Peer Comparison: How Does HealthStream Stack Up?
To gain a deeper understanding of HealthStream’s performance, let’s compare it to some of its key competitors: Simulations Plus, Phreesia, and Definitive Healthcare.
| Company | Consensus Rating | Average 1-Year Price Target | Implied Upside/Downside |
|—|—|—|—|
| Simulations Plus | Outperform | $47.0 | 62.46% Upside |
| Phreesia | Buy | $29.4 | 1.62% Upside |
| Definitive Healthcare | Neutral | $5.61 | 80.61% Downside |
While Simulations Plus enjoys an Outperform consensus with significant upside potential, Phreesia also holds a Buy rating. Definitive Healthcare, on the other hand, faces a more bearish outlook with a Neutral rating and significant downside potential.
Key Financial Metrics: A Deeper Dive
Here’s a breakdown of key financial metrics for HealthStream, compared to its peers:
| Company | Consensus Rating | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| HealthStream | Neutral | 3.41% | $47.82M | 1.20% |
| Simulations Plus | Outperform | 14.23% | $13.26M | 1.75% |
| Phreesia | Buy | 18.97% | $69.30M | -7.15% |
| Definitive Healthcare | Neutral | 4.56% | $50.45M | -28.39% |
While HealthStream ranks in the middle for consensus rating among its peers, it lags behind in revenue growth. However, it boasts the highest gross profit among its peers. Its return on equity, however, is the lowest, indicating potential challenges in effectively utilizing shareholder funds.
What is HealthStream?
HealthStream Inc. is a leading provider of workforce and provider solutions for healthcare organizations. Their services include:
*
Workforce Solutions:
SaaS-based subscription products used by healthcare organizations for workforce development.*
Provider Solutions:
Software applications for managing and tracking provider credentialing, privileging, call center, and enrollment activities.The majority of HealthStream’s revenue comes from subscription services.
Financial Highlights
*
Market Capitalization:
HealthStream’s market capitalization is below industry averages, potentially reflecting factors such as growth expectations or operational capacity.*
Positive Revenue Trend:
Over the last 3 months, HealthStream has achieved a 3.41% revenue growth rate, showcasing a positive trend in top-line earnings. However, this growth lags behind its industry peers.*
Net Margin:
HealthStream’s net margin surpasses industry standards, demonstrating its exceptional financial performance and cost management capabilities.*
Return on Equity (ROE):
HealthStream boasts an impressive ROE, exceeding industry averages, signifying efficient use of equity capital and strong financial health.*
Return on Assets (ROA):
HealthStream’s ROA also surpasses industry standards, highlighting its effective asset utilization for optimal returns.*
Debt Management:
The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms.Stay Tuned!
This earnings release is a crucial event for HealthStream and its investors. Keep an eye out for the company’s announcement on Monday, October 21st, and be sure to follow further analysis to gain insights into the company’s future prospects.
