06:22 AM EDT, 03/20/2024 (MT Newswires) -- HealthEquity's ( HQY ) shares rose early Wednesday after the health-savings account company logged better-than-expected fiscal fourth-quarter results, while reiterating its full-year revenue outlook.

Per-share adjusted earnings came in at $0.63 for the quarter ended Jan. 31, up from $0.37 the year before, the company said late Tuesday. The consensus on Capital IQ was for normalized EPS of $0.60. Revenue climbed 12% to $262.4 million, topping the Street's view for nearly $259 million.

"New logo growth and network partner production drove a record (fourth quarter) and a strong year overall," Chief Executive Jon Kessler said during an earnings call, according to a Capital IQ transcript. The stock gained 4.8% in premarket trading.

Service revenue ticked down 1% to $118.6 million, "reflecting the final runoff of national emergency activity," Chief Financial Officer James Lucania said on the call. Custodial revenue jumped 35% to $105.4 million, while the interchange segment grew 6% to $38.4 million.

Total operating expenses widened to $124.4 million from $121.6 million in the prior-year quarter. HealthEquity ( HQY ) ended the fiscal year with 8.7 million health savings account members, reflecting an annual increase of 9%. Total health savings account assets climbed 14% to $25.2 billion.

For fiscal 2025, the company continues to expect revenue to come in between $1.14 billion and $1.16 billion, while the Street is looking for $1.15 billion. For the previous fiscal year, revenue advanced 16% to $999.6 million. Adjusted EPS is pegged at $2.79 to $2.96 versus analysts' current estimate of $2.87.

The outlook takes into account the "carryforward of stronger-than-expected (fourth-quarter) sales" and efficiencies from technology investments, "offset by slightly higher mix of investments versus cash in (health savings account) assets," Lucania said. "Our guidance reflects an expectation for an average yield on HSA cash of approximately 300 basis points for fiscal 2025," he told analysts.

Adjusted earnings before interest, taxes, depreciation and amortization is anticipated to be in a range of $438 million to $458 million for fiscal 2025, compared with last year's result of $369.2 million. "We believe we are well-positioned to continue our growth in fiscal 2025 as our technology investments enable us to continue taking market share," Kessler said in the earnings statement.

Price: 87.52, Change: +3.99, Percent Change: +4.78