Earnings Preview For HealthStream

HealthStream (NASDAQ:HSTM) will release its quarterly earnings report on Monday, 2024-10-21. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate HealthStream to report an earnings per share (EPS) of $0.12.

Anticipation surrounds HealthStream's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

During the last quarter, the company reported an EPS beat by $0.04, leading to a 4.04% drop in the share price on the subsequent day.

Here's a look at HealthStream's past performance and the resulting price change:

Quarter	Q2 2024	Q1 2024	Q4 2023	Q3 2023
EPS Estimate	0.12	0.11	0.10	0.09
EPS Actual	0.16	0.17	0.15	0.13
Price Change %	-4.0%	10.0%	-2.0%	15.0%

Performance of HealthStream Shares

Shares of HealthStream were trading at $28.93 as of October 17. Over the last 52-week period, shares are up 31.2%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on HealthStream

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on HealthStream.

HealthStream has received a total of 1 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $28.0, the consensus suggests a potential 3.21% downside.

Understanding Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Simulations Plus, Phreesia and Definitive Healthcare, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Simulations Plus received a Outperform consensus from analysts, with an average 1-year price target of $47.0, implying a potential 62.46% upside.
• The prevailing sentiment among analysts is an Buy trajectory for Phreesia, with an average 1-year price target of $29.4, implying a potential 1.62% upside.
• Definitive Healthcare is maintaining an Neutral status according to analysts, with an average 1-year price target of $5.61, indicating a potential 80.61% downside.

Summary of Peers Analysis

Within the peer analysis summary, vital metrics for Simulations Plus, Phreesia and Definitive Healthcare are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company	Consensus	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%

Key Takeaway:

HealthStream ranks in the middle for consensus rating among its peers. It is at the bottom for revenue growth. In terms of gross profit, HealthStream is at the top among its peers. However, its return on equity is at the bottom compared to the others.

About HealthStream

HealthStream Inc provides workforce and provider solutions for healthcare organizations. Its reportable segments include Workforce Solutions and Provider Solutions. Workforce development solutions consist of SaaS, subscription-based products that are used by healthcare organizations. Its Provider Solutions products offer healthcare organizations software applications for administering and tracking provider credentialing, privileging, call center and enrollment activities. The company generates a majority of its revenue from Subscription Services.

HealthStream's Financial Performance

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: HealthStream's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 3.41%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: HealthStream's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.82% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): HealthStream's ROE stands out, surpassing industry averages. With an impressive ROE of 1.2%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): HealthStream's ROA excels beyond industry benchmarks, reaching 0.82%. This signifies efficient management of assets and strong financial health.

Debt Management: HealthStream's debt-to-equity ratio is below the industry average at 0.05, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for HealthStream visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.