GoodRx (NASDAQ:GDRX) stock gained over 13% in yesterday’s trading session after the company provided preliminary results for the fourth quarter and full-year 2023 revenue. Also, it raised 2024 revenue guidance. GDRX provides a digital healthcare platform that supplies prescription drugs at affordable prices.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Preliminary Results & Guidance
For Q4, the company reported preliminary revenues between $195 million and $197 million, up from a prior outlook of $188 million to $194 million. Interestingly, the guidance remains above Wall Street estimates of $190.83 million. Further, GDRX anticipates that 2023 revenue will remain in the range of $749 million to $751 million, compared with the previous guidance of $742 million to $748 million.
The company’s top-line growth was driven by strength in prescription transaction revenues, attributable to an upsurge in seasonal respiratory illnesses and favorable weather patterns. GoodRx is expected to report its Q4 and full-year 2023 results on February 29, 2024.
Based on the strong preliminary estimates, GoodRx is also optimistic about its future performance. The company expects revenue in the first quarter and full-year 2024 to grow by a mid-single-digit percentage year-over-year.
Is GDRX Stock a Good Buy?
Following the news, analyst Stan Berenshteyn of Wells Fargo reiterated a Hold rating on the stock with a price target of $6, which implies a downside potential of 7.3%. The analyst sees the preliminary results to be “directionally positive” and provide better visibility into the company’s performance trajectory in 2024.
Overall, Wall Street analysts are sidelined on GoodRx. It has a Hold rating based on four Buys, eight Holds, and one Sell. The average stock price target of $6.68 implies 3.3% upside potential. GDRX stock has gained 24.7% over the past year.
