Hims & Hers Health Reports Strong Quarterly Earnings; What’s Next?
Quarterly Performance Shows Growth in Revenue and Earnings
Hims & Hers Health, Inc. (HIMS) reported quarterly earnings of $0.06 per share, which aligns with the Zacks Consensus Estimate. This marks a significant improvement compared to a loss of $0.04 per share from the same period last year. The results have been adjusted for non-recurring items.
In the previous quarter, analysts predicted earnings of $0.05 per share. Hims & Hers exceeded these expectations, actually generating earnings of $0.06 per share, resulting in a positive surprise of 20%.
Across the last four quarters, the company has consistently outperformed consensus EPS estimates three times.
In the latest quarter ending September 2024, Hims & Hers Health, operating within the Zacks Medical Info Systems sector, reported revenues of $401.56 million. This figure exceeded the Zacks Consensus Estimate by 4.52% and significantly improved from last year’s revenue of $226.7 million. The firm has successfully beaten consensus revenue estimates in all four of the previous quarters.
Future stock movements will likely hinge on management’s insights during the upcoming earnings call, crucial for investor sentiment.
Since the start of this year, Hims & Hers Health shares have surged approximately 128.8%, contrasting with the S&P 500’s gain of 20.1%.
Looking Ahead: What’s Next for Hims & Hers Health?
Despite the stock’s impressive performance thus far, many investors are pondering what lies ahead for Hims & Hers. While forecasts are uncertain, understanding the company’s earnings outlook can provide guidance. This outlook not only includes current earnings estimates for upcoming quarters but also indicates how these estimates have shifted recently.
Research indicates a strong link between stock price movements and changes in earnings estimates. Investors have the option to track these revisions independently or utilize the Zacks Rank, a reliable tool with a proven track record for measuring earnings estimate changes.
Currently, the trend of estimate revisions for Hims & Hers Health is mixed. After their recent earnings announcement, the stock holds a Zacks Rank of #3 (Hold), suggesting it may perform in line with the market in the near term. For further insights, investors can view the complete list of Zacks #1 Rank (Strong Buy) stocks.
Changes in earnings estimates are anticipated in the coming days. Analysts currently forecast an EPS estimate of $0.05 on revenues of $424.7 million for the next quarter, and an EPS of $0.22 on $1.4 billion in revenues for the current fiscal year.
It’s essential for investors to note that overall industry conditions can significantly affect stock performance. The Medical Info Systems sector currently ranks in the top 30% among over 250 Zacks industries. Historically, stocks in the top half of industry rankings outperform those in the bottom half by more than two to one.
Another company in the same sector, Clover Health Investments, Corp. (CLOV), has yet to release its results for the quarter ending September 2024. Scheduled for November 6, Clover is projected to report a quarterly loss of $0.03 per share, representing a 66.7% improvement year-over-year. The consensus EPS estimate has remained steady over the last month, with expected revenues of $347.6 million, down 27.9% from the same quarter last year.
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Hims & Hers Health, Inc. (HIMS): Free Stock Analysis Report
Clover Health Investments, Corp. (CLOV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
