Healthequity Inc (NASDAQ:HQY) stock rose 5.27% (As on September 4, 11:28:42 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 24. As of July 31,2024, the total number of Health Savings Accounts (HSA) for which HealthEquity served as a non-bank custodian was 9.4 million, up 15% year over year. HealthEquity reported 711,000 HSAs with investments as of July 31,2024, up 24% year over year. Total accounts, as of July 31,2024, were 16.3 million, up 9% year over year. Total HSA assets were $29.5 billion at the end of July 31, 2024, up 27% year over year. This included $16.4 billion of HSA cash (up 17% year over year) and $13.1 billion of HSA investments (up 43% year over year). Client-held funds, which are deposits held on behalf of HealthEquity’s clients to facilitate the administration of its CDBs and from which the company generates custodial revenues, were $820 million (up 1% year over year) as of July 31, 2024.

HQY in the second quarter of FY 24 has reported the adjusted earnings per share of 86 cents, beating the analysts’ estimates for the adjusted earnings per share by 22.9%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 23.2 percent to $299.93 million in the second quarter of FY 24, beating the analysts’ estimates for revenue by 5.4%. Service revenues totaled $116.7 million in the quarter, up 4.2% year over year. This reflected a higher number of HSAs and invested HSA Assets, partially offset by the runoff of National Emergency CDB activity. Custodial revenues totaled $138.7 million, up 49.6% from the year-ago period. Interchange revenues totaled $44.5 million, up 14.4% year over year. The company exited the second quarter of fiscal 2025 with cash and cash equivalents of $326.9 million compared with $404 million at the end of the first quarter of fiscal 2025. Total debt (net of issuance costs) at the end of second-quarter fiscal 2025 was $1.1 billion compared with $875 million at the end of first quarter fiscal 2025.

For fiscal 2025, revenues are now projected to be between $1.17 billion and $1.19 billion. The Zacks Consensus Estimate is currently pegged at $1.17 billion. Adjusted EPS is now expected to be in the range of $2.98-$3.14. The Zacks Consensus Estimate currently stands at $3.00.