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Why Are Accolade Shares Down Over 40% Today

Benzinga · 04/29/2022 13:55
  • Accolade Inc (NASDAQ:ACCD) shares plunged almost 50% after disappointing Q4 FY22 earnings and FY23 guidance.
  • Q4 FY22 revenue increased 58% Y/Y to $93.8 million, beating the consensus of $91.57 million.
  • The company reported a wider net loss of $(34.56) million compared to $(4.73) million a year ago.
  • EPS loss came at $(0.51) higher than the consensus of $(0.36).
  • Guidance: For Q1 FY23, Accolade expects revenues of $81 million - $83 million, below the consensus of $85.91 million.
  • It expects adjusted EBITDA loss of $(20) million - $(22) million.
  • For FY23, the company forecasts revenues of $350 million - $365 million, below the consensus of $387.39 million.
  • It expects adjusted EBITDA of $(35) million - $(40) million.
  • Credit Suisse has downgraded Accolade to Neutral and cut the price target to $9.
  • Morgan Stanley downgraded the stock to Equal-Weight, with a price target lowered to $9.
  • SVB Leerink too downgraded ACCD to Market Perform and lowered the price target to $8.
  • Needham maintains Buy on Accolade but cuts the price target to $12
  • Piper Sandler maintains Overweight with the price target slashed to $11
  • B of A Securities also downgraded Accolade to Neutral, with lowered price target to $9.
  • Price Action: ACCD shares are down 45% at $6.08 during the market session on the last check Friday.