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Should You Buy Hims & Hers Health (HIMS) Ahead of Q1 Earnings?
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Hims & Hers Health (HIMS - Free Report) is scheduled to release first-quarter 2024 results on May 6, after market close.
Strong expansion of its telehealth platform globally has boosted investors’ confidence in Hims & Hers Health. The company has been undertaking significant efforts to gain subscribers. It targets tens of millions of users on its platform given the fact that more than 100 million consumers are impacted by conditions in the specialties Hims & Hers Health serves. These efforts are significantly driving the stock price.
In the last reported quarter, the company’s earnings of 1 cent per share exceeded the Zacks Consensus Estimate by a margin of 150%. Its earnings surpassed the consensus estimate in three of the trailing four quarters and missed in one, the average surprise being 45.84%.
Let’s see how things have shaped up prior to the upcoming announcement.
Factors to Focus on Ahead of Q1 Earnings
Hims & Hers Health is consistently witnessing strong market acceptance of its range of curated prescription and non-prescription health and wellness products and services. The company has been investing in a disciplined approach to scale its platform. This is significantly driving the number of subscribers. The company ended 2023 with more than 1.5 million subscribers, up 48% from 2022.
Hims & Hers Health has been enhancing its suite of personalized offerings across each of its specialties. These include the launch of Hard Mints in chewable in Men's Sexual Health, Hair Blends in Women's Dermatology, the first multi-action offers in Heart Support and its weight management offering. It is expected to have witnessed strong market acceptance in the first quarter.
The company is also expected to have benefited from its strategy to ensure that these solutions are placed at attractive price points. These are expected to have driven demand and retention. Further, Hims & Hers Health’s shift toward affiliated pharmacies has allowed the company to offset the margin impact of strategic pricing actions implemented in 2023. This too might have benefited the company’s business in the first quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for HIMS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: HIMS has an Earnings ESP of +60.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hims & Hers Health currently carries a Zacks Rank #2.
Estimates Increase Y/Y
The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $270.7 million, suggesting a 41.9% rise from the prior-year quarter’s figure. The consensus estimate for earnings of 2 cents per share indicates a 140% year-over-year increase.
Bright Long-Term Growth Prospects
While the earlier-discussed factors are expected to have aided the company’s performance in the to-be-reported quarter, a single quarter’s results are not so important for long-term investors.
Hims & Hers Health has been gaining market share by offering a range of curated prescription and non-prescription health and wellness products and services available for purchase on its websites and mobile application. The company is confident that personalized solutions can drive increased longevity on the platform and can help facilitate the acquisition of new users. As the company continues to see increasingly rapid adoption of personalized approaches across newer specialties such as Hers dermatology, mental health and weight loss, HIMS strongly expects each of these specialties to have the ability to deliver more than $100 million of revenues in 2025.
The company believes that personalization will be key to unlocking new opportunities in 2024 for the treatment of users who may have alternative form factor needs or require unique dosages. Gradually, the company expects MedMatch by Hims & Hers to be a critical tool in giving both providers and consumers the confidence that a treatment will work for them.
Banking on all these factors, the company is approaching its first year of record $1 billion in revenues, with the first positive net income in 2024.
Figures Show Bullish Trajectory Ahead
Year to date, HIMS has gained 37.5% against the industry’s 13.9% decline.
Estimates for Hims & Hers Health’s 2024 earnings have increased to 11 cents from 8 cents per share in the past 60 days.
The company delivered record annual revenues of $825 million in 2023, a stupendous increase of 65% from the 2022 annual figure.
Year-To-Date Performance
Image Source: Zacks Investment Research
Our Take
Hims & Hers Health is a buy ahead of its first-quarter results as earnings estimates continue to rise for both 2024 and 2025.
Hims & Hers Health’s spree of innovations and expansion strategies are driving market share for the company. At the same time, the lion’s share of the company’s orders is fulfilled via affiliated pharmacies. Investments made in affiliated pharmacies have provided the foundation for expanded capabilities as well as efficiency gains. Affiliated pharmacies allow the company to drive efficiencies across key costs such as logistics, product costs, and even customer support. This effort is expected to strongly contribute to the company’s margin going forward.
With so many factors working in its favor, we believe HIMS is a good stock for investors to bet on.
Other Stocks to Consider
Here are some other medical stocks worth considering:
Image: Bigstock
Should You Buy Hims & Hers Health (HIMS) Ahead of Q1 Earnings?
Hims & Hers Health (HIMS - Free Report) is scheduled to release first-quarter 2024 results on May 6, after market close.
Strong expansion of its telehealth platform globally has boosted investors’ confidence in Hims & Hers Health. The company has been undertaking significant efforts to gain subscribers. It targets tens of millions of users on its platform given the fact that more than 100 million consumers are impacted by conditions in the specialties Hims & Hers Health serves. These efforts are significantly driving the stock price.
In the last reported quarter, the company’s earnings of 1 cent per share exceeded the Zacks Consensus Estimate by a margin of 150%. Its earnings surpassed the consensus estimate in three of the trailing four quarters and missed in one, the average surprise being 45.84%.
Let’s see how things have shaped up prior to the upcoming announcement.
Factors to Focus on Ahead of Q1 Earnings
Hims & Hers Health is consistently witnessing strong market acceptance of its range of curated prescription and non-prescription health and wellness products and services. The company has been investing in a disciplined approach to scale its platform. This is significantly driving the number of subscribers. The company ended 2023 with more than 1.5 million subscribers, up 48% from 2022.
Hims & Hers Health has been enhancing its suite of personalized offerings across each of its specialties. These include the launch of Hard Mints in chewable in Men's Sexual Health, Hair Blends in Women's Dermatology, the first multi-action offers in Heart Support and its weight management offering. It is expected to have witnessed strong market acceptance in the first quarter.
The company is also expected to have benefited from its strategy to ensure that these solutions are placed at attractive price points. These are expected to have driven demand and retention. Further, Hims & Hers Health’s shift toward affiliated pharmacies has allowed the company to offset the margin impact of strategic pricing actions implemented in 2023. This too might have benefited the company’s business in the first quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for HIMS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: HIMS has an Earnings ESP of +60.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hims & Hers Health currently carries a Zacks Rank #2.
Estimates Increase Y/Y
The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $270.7 million, suggesting a 41.9% rise from the prior-year quarter’s figure. The consensus estimate for earnings of 2 cents per share indicates a 140% year-over-year increase.
Bright Long-Term Growth Prospects
While the earlier-discussed factors are expected to have aided the company’s performance in the to-be-reported quarter, a single quarter’s results are not so important for long-term investors.
Hims & Hers Health has been gaining market share by offering a range of curated prescription and non-prescription health and wellness products and services available for purchase on its websites and mobile application. The company is confident that personalized solutions can drive increased longevity on the platform and can help facilitate the acquisition of new users. As the company continues to see increasingly rapid adoption of personalized approaches across newer specialties such as Hers dermatology, mental health and weight loss, HIMS strongly expects each of these specialties to have the ability to deliver more than $100 million of revenues in 2025.
The company believes that personalization will be key to unlocking new opportunities in 2024 for the treatment of users who may have alternative form factor needs or require unique dosages. Gradually, the company expects MedMatch by Hims & Hers to be a critical tool in giving both providers and consumers the confidence that a treatment will work for them.
Banking on all these factors, the company is approaching its first year of record $1 billion in revenues, with the first positive net income in 2024.
Figures Show Bullish Trajectory Ahead
Year to date, HIMS has gained 37.5% against the industry’s 13.9% decline.
Estimates for Hims & Hers Health’s 2024 earnings have increased to 11 cents from 8 cents per share in the past 60 days.
The company delivered record annual revenues of $825 million in 2023, a stupendous increase of 65% from the 2022 annual figure.
Year-To-Date Performance
Image Source: Zacks Investment Research
Our Take
Hims & Hers Health is a buy ahead of its first-quarter results as earnings estimates continue to rise for both 2024 and 2025.
Hims & Hers Health’s spree of innovations and expansion strategies are driving market share for the company. At the same time, the lion’s share of the company’s orders is fulfilled via affiliated pharmacies. Investments made in affiliated pharmacies have provided the foundation for expanded capabilities as well as efficiency gains. Affiliated pharmacies allow the company to drive efficiencies across key costs such as logistics, product costs, and even customer support. This effort is expected to strongly contribute to the company’s margin going forward.
With so many factors working in its favor, we believe HIMS is a good stock for investors to bet on.
Other Stocks to Consider
Here are some other medical stocks worth considering:
Gritstone bio, Inc. (GRTS - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank of 2. GRTS has an estimated growth rate of 20.8% for 2024. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gritstone’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 12.1%.
Erasca, Inc. (ERAS - Free Report) has an Earnings ESP of +12.20% and a Zacks Rank of 2. ERAS has an estimated long-term growth rate of 37.5%.
Erasca’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 17.6%.
Alcon (ALC - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank of 3. ALC has an estimated long-term growth rate of 12.8%.
Alcon’s earnings surpassed estimates in three out of the trailing four quarters and missed in one with the average surprise being 7.35%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.