Hims And Hers Stock Sinks: Here’s What Went Wrong
Monday’s extended trading saw a 9% decline in Hims & Hers Health shares after the telehealth provider revealed second-quarter earnings that fell short of Wall Street’s sales projections. According to LSEG’s compilation of average analyst estimates, the company performed as follows:
- Earnings per share: 17 cents adjusted as opposed to 15 cents anticipated
- Revenue: $544.8 million as opposed to $552 million anticipated
Hims & Hers Delivers Record Profit as Revenue Growth Outpaces Forecasts
According to a release, Hims & Hers’ revenue climbed 73% in the second quarter from $315.6 million in the same period the previous year. In comparison to $13.3 million, or 6 cents per share, in the same time last year, Hims & Hers posted a net income of $42.5 million, or 17 cents per share.
While analysts were anticipating $583 million in revenue for its third quarter, Hims & Hers stated that it intended to report between $570 million and $590 million. EBITDA, or adjusted profits before interest, taxes, depreciation, and amortization, is expected to be between $60 million and $70 million for the quarter, according to the business.
Novo Nordisk Breakup Sparks 30% Drop in Hims & Hers Stock
Compounded GLP-1s are less expensive, unapproved versions of the popular diabetes and weight-loss medications, and Hims & Hers has been under fire for continuing to sell them in recent months. When there is a scarcity of brand-name medications, compounded medications can be mass-produced. Nevertheless, the U.S. Food and Drug Administration declared in February that prolonged supply problems had been fixed.
In June, Hims & Hers’ stock dropped over 30% following the breakdown of a brief partnership with Novo Nordisk. The manufacturer claimed that Hims & Hers had broken the law, which forbids the false guise of personalization in order to sell compounded medications in bulk.
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