Shares of telehealth platform Hims & Hers (NYSE:HIMS) surged nearly 8% in the pre-market session today after the company delivered robust third-quarter sales growth, provided strong full-year guidance, and announced a share repurchase program worth $50 million.
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During the quarter, revenue soared by 56.5% year-over-year to $226.7 million, exceeding estimates by $6.6 million. EPS of -$0.04 came in line with expectations. The company’s strategy of offering personalized solutions at mass-market prices seems to be paying off, with the number of subscribers rising by 56% year-over-year to 1.4 million. Online revenue now makes up nearly 57% of HIMS’ top line. Further, net orders during the quarter increased by 33% to 2.22 million.
For Fiscal year 2023, HIMS expects revenue to be in the range of $868 million to $873 million, with an anticipated adjusted EBITDA range of $43 million to $46 million. For the upcoming quarter, revenue is expected to land between $243 million and $248 million, with adjusted EBITDA expected to be between $14 million and $17 million.
Buoyed by the robust Q3 performance and a cash pile of $212 million at the end of the quarter, HIMS has announced a share repurchase program of up to $50 million over the next two years.
What Is the Stock Market Forecast for Hims & Hers?
Overall, the Street has a Moderate Buy consensus rating on Hims & Hers. Following a nearly 47% slide in the company’s share price over the past six months, the average HIMS price target of $12.30 implies a more than massive 95.9% potential upside.
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