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HealthEquity Stock Plummets as Firm’s Profit Hurt by Cyber Threats, Fraud
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Key Points
- HealthEquity says it increases costs due to cyber threats and fraudulent attacks.
- The health savings account custodian missed profit estimates and provided weak guidance throughout the year.
- HealthEquity accused the “bad actors” of reducing gross profit by about $17 million.
Shares of Health Equity (hqy) Sinked 20% on Wednesday Health Savings Account (HSA) The custodian missed the estimate of profits and gave weak guidance in dealing with the cost of criminal activities against the company.
The company reports fiscal fourth quarter of fiscal 2025 Earnings per share (EPS) $0.69, while analysts surveyed through Visible Alpha are priced at $0.71. Revenue rose 19% year-on-year to $311.8 million, exceeding expectations.
CEO Scott Cutler explained in a transcript of analyst appeals provided by Alphaense that, along with other financial companies, Healthy Stocks “use advanced technologies, techniques and methods to enhance cyber threats and fraud attacks by bad actors.” Cutler noted that these activities “cause excessive service charges.”
CFO James Lucania knows gross profit Due to the additional service costs, “around $17 million has been cut in order to protect members from and reimburse them for complex fraudulent activities and assist members during the merger of our card processors.”
HealthEquity’s full-year adjusted earnings per share were $3.57 to $3.74, with revenues ranging from $1.28 billion to $1.33 billion. The visible Alpha is estimated at $3.66 and $1.32 billion, respectively.
The news extends Healthequity shares to the past year.
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