Hims earnings impact on Hims & Hers Health stock: Hims earnings today: Why Hims & Hers Health stock dropped despite raising revenue forecast – here’s what investors need to know
Hims & Hers Healthcare Stock Drops After Today’s Gains
The telehealth company said first-quarter revenue hit $608.1 million, missing Wall Street expectations of $616.85 million, according to a report. It also reported a loss of 40 cents per share, compared to analysts’ expectations for a profit of 4 cents per share.
How Are GLP-1 Weight Loss Drugs Reshaping Women’s Strategy?
As reported by Reuters, the results come as the company continues to push toward more personalized treatments while facing tougher regulatory scrutiny of its GLP-1 weight-loss drugs in the United States.
“We made a strategic pivot in the first quarter that expanded our branded GLP-1 product lines, and early demand signals indicate a meaningful expansion of our consumer reach,” Hims & Hers Health Chief Financial Officer Yemi Okupe said, as quoted by Reuters. But average monthly revenue per subscriber fell to $80 from $85 the previous year; This was a reflection of the spending per subscriber.
FDA Review Puts New Pressure on Women and Their Health
The company also faced pressure after the U.S. Food and Drug Administration moved to restrict compounded knockoff versions of GLP-1 drugs. The FDA had previously referred Hims to the Department of Justice for possible violations, raising investor concerns.
Hims & Hers Raises Full-Year Revenue Forecast Despite Weak Quarter
Despite the weak quarter, Hims raised its full-year revenue forecast to between $2.8 billion and $3 billion, from $2.7 billion to $2.9 billion.
The company also forecast stronger-than-expected second-quarter revenue of $680 million to $700 million, above analysts’ estimates of $642.95 million.
Hims & Hers Ends Compound Wegovy Alternative Amid Regulatory Scrutiny
In March, Novo Nordisk partnered with Hims to offer Hims’ blockbuster weight-loss drug Wegovy on the platform, settling a legal dispute that has now been discontinued after Hims previously offered a lower-cost compounded alternative to the drug.
FAQ
Why did Hims’ shares fall?
The stock fell after the company reported weaker-than-expected revenue and a surprise quarterly loss.
How much revenue did Hims & Hers report?
The company reported revenue of $608.1 million in the first quarter.
