Group 1: Company Performance - Ollie's Q1 sales reached $576.77 million, a 13% increase from $508.82 million year-over-year, exceeding estimates by 2% [2] - HealthEquity's Q1 sales were $330.84 million, up 15% from $287.6 million in the previous year, surpassing estimates by 3% [3] - Ollie's Q1 earnings per share (EPS) were $0.75, beating expectations of $0.70 by 7% and increasing 3% from the prior period [2] - HealthEquity's Q1 EPS was $0.97, a 21% increase from $0.80 year-over-year, exceeding expectations by nearly 20% [3] Group 2: Strategic Initiatives - Ollie's opened 25 new stores in Q1, marking a record for any period in its history, and has over 500 stores across 32 states [4][5] - The company capitalized on retail store closures and supply chain disruptions to acquire new locations, particularly through bankruptcy auctions of former Big Lots stores [5][7] - HealthEquity's growth was driven by its enrollment and contribution strategy, which focuses on helping employers reduce healthcare costs while empowering employees [8] Group 3: Market Position and Outlook - Ollie's stock has remained virtually flat for the year but has increased over 400% since its IPO in 2015 [7] - HealthEquity's Health Savings Accounts (HSA) assets grew 15% year-over-year to a record $31.27 billion, contributing to a stock rally that reached new 52-week highs [9] - Both companies are expected to achieve double-digit EPS growth in fiscal years 2026 and 2027, making them attractive investment opportunities amid economic uncertainty [13]

Core Insights - HealthEquity, Inc. (HQY) reported adjusted earnings per share (EPS) of 97 cents for the first quarter of fiscal 2026, exceeding the Zacks Consensus Estimate by 19.8% and showing a year-over-year improvement of 21.3% [2][10] - The company generated revenues of $330.8 million in the fiscal first quarter, surpassing the Zacks Consensus Estimate by 3% and reflecting a 15% increase from the prior-year quarter [3][10] - HealthEquity's total number of Health Savings Accounts (HSAs) reached 9.9 million, a 9% year-over-year increase, with total HSA assets amounting to $31.3 billion, up 15% year over year [4][5] Revenue Breakdown - Service revenues for the quarter totaled $119.8 million, up 1.3% year over year, driven by an increase in HSAs and invested HSA assets [7] - Custodial revenues reached $156.5 million, marking a 28.6% increase from the previous year, while interchange revenues totaled $54.6 million, up 14.4% year over year [8][10] Margin and Profitability - HealthEquity's gross profit rose 19.9% to $224.3 million, with the gross margin expanding by 270 basis points to 67.8% [11][10] - Operating profit improved significantly by 99.6% to $83.1 million, with the operating margin expanding by 1060 basis points to 25.1% [13][10] Financial Position - At the end of the first quarter of fiscal 2026, HealthEquity had cash and cash equivalents of $287.9 million and total debt of $1.06 billion, unchanged from the previous quarter [14] - Net cash provided by operating activities was $64.7 million, slightly down from $65.4 million a year ago [14] Guidance and Future Outlook - HealthEquity has reiterated its revenue guidance for fiscal 2026, projecting revenues between $1.285 billion and $1.305 billion, with adjusted EPS expected in the range of $3.61-$3.78 [15] - The company added 150,000 new HSAs during the quarter and reported a significant reduction in fraud-related costs, which dropped from $11 million to $3 million, enhancing margins and member trust [17][18]

Shares of HealthEquity (NASDAQ: HQY ) have been a solid performer over the past year, gaining 28% as the company has benefitted from secular growth in health savings accounts (HSAs) and higher-for-longer interest rates. Shares continued their strong run TuesdayOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an ar ...

POLAND - 2025/02/14: In this photo illustration, the HealthEquity Inc company logo is seen displayed ... More on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesHealthEquity (NASDAQ:HQY), a custodian for health savings accounts, is set to announce its earnings on Tuesday, June 3, 2025. Historically, the stock has demonstrated a strong likelihood of positive returns following its earnings announcements. Over the last five ...