Telehealth company Hims & Hers Health is set to report its earnings this Monday afternoon, and analysts are closely examining the results. Last quarter, Hims & Hers Health reported revenues of $544.8 million, which represented a year-on-year growth of 72.6%, although it fell short of analysts’ expectations by 1.1%. The company beat earnings per share (EPS) estimates, but its guidance for next quarter’s earnings before interest, taxes, depreciation, and amortization (EBITDA) missed forecasts significantly. Notably, Hims & Hers added 73,000 customers during the last quarter, bringing its total customer count to 2.44 million.
Looking ahead, analysts predict that Hims & Hers will see revenue growth of 44.3% year-on-year, totaling $579.6 million for this quarter. This is a slowdown compared to the impressive 77.1% increase recorded in the same quarter last year. Expected adjusted earnings are estimated at $0.23 per share. Over the past month, analysts have reaffirmed their projections, indicating a consistent outlook as the company approaches its earnings report. Over the last two years, Hims & Hers Health has missed revenue estimates only once and has exceeded top-line expectations by an average of 3%.
In the broader healthcare technology sector, Omnicell has provided positive earnings news, surpassing analysts’ revenue estimates by 5% and achieving a year-on-year sales growth of 10%, leading to a 13.6% increase in stock price. Hims & Hers Health’s stock, however, has seen a decline of 11.8% in the past month, while overall share prices in the healthcare technology sector have remained stable.
As Hims & Hers prepares for its earnings announcement, it faces a current average analyst price target of $47.77, compared to its current trading price of $46.35. This context presents a variety of considerations for investors weighing whether to buy or sell shares in the company leading into the earnings report. The anticipation of earnings provides a window of opportunity for strategic decisions in this evolving sector.