Shares of HealthEquity (HQY) - Get Report slipped 7% to $54.07 Wednesday after the health information services company beat Wall Street's second-quarter earnings forecast but lowered its full-year guidance.
The Draper, Utah-based company reported net income of $19.4 million, down 14% from a year ago, and earnings of 45 cents a share, up from 36 cents a share a year ago and ahead of analysts' estimates of 35 cents. Revenue totaled $86.6 million, up 22% from a year ago and beat Wall Street's call for $85.4 million.
However, the company said it now expects full-year earnings of $1.10 to $1.16 a share, down from an earlier forecast of $1.28 to $1.34 and falling short of analysts' estimates of $1.33 a share.
HealthEquity said it expects revenue to range from $341 million to $347 million, up from a prior view of $339 million to $345 million and ahead of Wall Street's consensus for $343 million.
"In addition to our outlook for the HealthEquity standalone business above, we expect WageWorks revenue for the five months to be between $170 and $175 million," the company said in a statement.
Jon Kessler, president and CEO, said that "we believe that HealthEquity's results in the second-quarter and the speedy close of the WageWorks acquisition position us for a strong second half selling season."