Telehealth company Hims & Hers Health (NYSE:HIMS) will be reporting earnings tomorrow afternoon. Here’s what investors should know.
Hims & Hers Health beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $401.6 million, up 77.1% year on year. It was an exceptional quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates. It added 183,000 customers to reach a total of 2.05 million.
Is Hims & Hers Health a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Hims & Hers Health’s revenue to grow 90.9% year on year to $470.8 million, improving from the 47.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hims & Hers Health has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Hims & Hers Health’s peers in the healthcare technology segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Premier’s revenues decreased 14.2% year on year, meeting analysts’ expectations, and Evolent Health reported revenues up 16.3%, falling short of estimates by 0.7%. Premier traded down 14.3% following the results while Evolent Health was also down 2.9%.
Read our full analysis of Premier’s results here and Evolent Health’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the healthcare technology stocks have shown solid performance, the group has generally underperformed, with share prices down 5.7% on average over the last month. Hims & Hers Health is up 60.6% during the same time and is heading into earnings with an average analyst price target of $34.38 (compared to the current share price of $49).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.