Shares of Accolade (ACCD), a personalized health and benefits solutions provider, rallied 1.2% in the extended trading session on Thursday after the company reported better-than-expected revenues for the first quarter of Fiscal Year 2022.
Revenues came in at $59.5 million, up 66% from the year-ago period, and surpassed the Street’s estimates of $55.7 million.
The company’s net loss stood at $0.84 per share against $0.37 per share estimated by analysts. However, it compares favorably with the net loss of $1.86 recorded in the same quarter last year.
Also, Accolade reported adjusted EBITDA of $12.8 million, up 35.7% year-over-year. (See Accolade stock chart on TipRanks)
CFO of Accolade Steve Barnes said, “We plan to invest in building out our enterprise primary care business and integrating Accolade, 2nd.MD and PlushCare, while continuing to grow PlushCare’s consumer business. We will continue to focus on driving top-line growth, while demonstrating consistent progress toward our long-term operating model.”
For the fiscal second quarter, the company expects to report revenues between $69 million and $71 million. Also, Accolade has raised guidance for full fiscal year. Revenues are expected to be in the range of $300-305 million, up from $260-265 million previously guided.
On July 7, Credit Suisse analyst Jailendra Singh reiterated a Buy rating on the stock and raised price target to $70 from $59. The new target implies 33.7% upside potential.
Singh noted that the company was poised to see upside potential from performance-based revenue in its core business and case rate related revenue from 2nd.MD.
Based on 8 Buys and 1 Hold, the stock has a Strong Buy consensus rating. The average Accolade price target of $61.22 implies 16.9% upside potential from current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Accolade, with 12.2% of investors registered with TipRanks increasing their exposure to ACCD stock over the past 30 days.
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