Shares of Hims & Hers Health (HIMS) sank in after-hours trading after the healthcare company reported earnings for its fourth quarter of Fiscal Year 2024 that were accompanied by a solid outlook. Earnings per share came in at $0.11, which was in line with analysts’ expectations.
In addition, sales increased by 95.1% year-over-year, with revenue hitting $481.13 million. This beat analysts’ expectations of 470.3 million. Interestingly, revenue excluding GLP-1 offerings increased 43% year-over-year to over $1.2 billion in Fiscal Year 2024. Furthermore, consolidated revenue rose by 69% year-over-year to nearly $1.5 billion, which was driven by the company’s weight loss offering.
CFO Yemi Okupe attributed the success to the company’s improving ability to democratize access to high-quality, personalized care.
2025 Outlook
Looking forward, management has provided the following guidance for 2025:
- Q1 2025 Revenue of between $520 million and $540 million versus analysts’ estimates of $494.6 million
- Q1 2025 Adjusted EBITDA of $55 million to $65 million compared to expectations of $58.74 million.
- FY 2025 Revenue of between $2.3 billion and $2.4 billion versus analysts’ consensus of $2.09 billion.
- FY 2025 Adjusted EBITDA of $270 million to $320 million compared to estimates of $272.5 million.
As we can see, the company’s outlook is better than expected, but the stock price still sank. The reason for this could be that the stock’s incredible 400% rally over the past year has finally lost its steam, especially after the FDA officially declared that Novo Nordisk’s (NVO) popular diabetes and weight loss therapies, Ozempic and Wegovy, are no longer in shortage. This means that HIMS will no longer be able to make compounded versions of those drugs, which has been a major growth driver.
Is HIMS Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on HIMS stock based on three Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average HIMS price target of $41.88 per share implies 18.4% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
