HealthStream (HSTM) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - HealthStream (HSTM) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended March 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Financial Expectations - The consensus estimate for HealthStream's quarterly earnings is $0.16 per share, reflecting a year-over-year decrease of 5.9%. Revenues are projected to reach $74.86 million, which is a 2.9% increase from the same quarter last year [3]. - The consensus EPS estimate has been revised 4.44% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model suggests that the Most Accurate Estimate for HealthStream is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.13%, which indicates a likelihood of beating the consensus EPS estimate [10][11]. - Historical performance shows that HealthStream has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +23.08% in the last reported quarter [12][13]. Industry Comparison - In comparison, Alphabet (GOOGL) is expected to report earnings of $2.01 per share for the same quarter, representing a year-over-year increase of 6.4%, with revenues projected at $75.53 billion, up 11.8% from the previous year [17]. - However, Alphabet's consensus EPS estimate has been revised 3.4% lower recently, resulting in a negative Earnings ESP of -1.08%, making it challenging to predict an earnings beat [18].