Health Catalyst Q2 Earnings Surpass Expectations

Earnings Performance and Market Outlook for Health Catalyst

Health Catalyst (HCAT) recently released its quarterly earnings report, which showed a profit of $0.04 per share. This result exceeded the Zacks Consensus Estimate of $0.03 per share. The figures are adjusted for non-recurring items, providing a clearer picture of the company's core performance. Compared to the same quarter last year, when the company reported earnings of $0.12 per share, this represents a significant drop.

The quarterly results marked an earnings surprise of +33.33%, indicating that the company outperformed expectations. However, this is not a consistent trend. In the previous quarter, the company had been expected to earn $0.01 per share, but it actually earned the same amount, resulting in no surprise. Over the past four quarters, Health Catalyst has only surpassed consensus EPS estimates once, highlighting a mixed performance.

In terms of revenue, the company reported $80.72 million for the quarter ended June 2025. This figure slightly exceeded the Zacks Consensus Estimate by 0.24%. Comparing this to the previous year’s revenue of $75.9 million, there is a modest increase. Health Catalyst has managed to beat revenue estimates three times in the last four quarters, showing some consistency in this area.

The stock’s immediate price movement following the earnings release will largely depend on the commentary from management during the earnings call. Analysts and investors will be closely watching for any insights into future performance and strategic direction.

Stock Performance and Investor Sentiment

Since the start of the year, Health Catalyst shares have declined by approximately 46%, while the S&P 500 has gained 7.9%. This underperformance has raised concerns among investors about the company's long-term prospects. As the market continues to evolve, questions remain about what the future holds for Health Catalyst.

Investors are particularly interested in the company’s earnings outlook. This includes current consensus expectations for the upcoming quarters as well as how these expectations have changed over time. Research has shown a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can either track these changes themselves or use tools like the Zacks Rank, which has a proven track record of leveraging earnings estimate revisions to predict stock performance.

Before the recent earnings release, the estimate revisions for Health Catalyst were mixed. While the direction and magnitude of these revisions could change after the report, the current status translates to a Zacks Rank #3 (Hold) for the stock. This suggests that the shares are expected to perform in line with the broader market in the near term.

Future Expectations and Industry Outlook

Looking ahead, the current consensus EPS estimate for the next quarter is $0.08, with projected revenues of $85.38 million. For the current fiscal year, the consensus EPS estimate stands at $0.24, with expected revenues of $334.82 million. Investors should monitor how these estimates evolve in the coming days, as they could significantly impact the stock’s trajectory.

The industry outlook also plays a crucial role in determining the stock’s performance. In terms of the Zacks Industry Rank, the Medical Info Systems sector is currently in the top 37% of the 250-plus Zacks industries. Historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. This suggests that the sector remains relatively strong compared to other industries.

Another company in the broader Zacks Medical sector, Fate Therapeutics (FATE), is yet to report its results for the quarter ended June 2025. This clinical-stage biotech firm, which focuses on stem cell treatments, is expected to post a quarterly loss of $0.35 per share. This represents a year-over-year decline of 6.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating limited optimism among analysts.

Fate Therapeutics’ revenues are expected to be $0.66 million, a significant drop from the $6.6 million reported in the same quarter last year. This decline underscores the challenges faced by companies in the biotech space, particularly those in the early stages of development.

As both Health Catalyst and Fate Therapeutics navigate their respective paths, investors will be closely monitoring their financial reports and industry trends to make informed decisions.