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GoodRx (GDRX) to Report Q1 Earnings: What's in the Offing?

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GoodRx Holdings, Inc. (GDRX - Free Report) is scheduled to report first-quarter 2021 results on May 13, after market close.

In the last reported quarter, the company’s earnings of 8 cents surpassed the Zacks Consensus Estimate by 33.3%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on two occasions with the average surprise being 22.9%.

Let’s see how things have shaped up prior to this announcement.

Factors to Note

Over the past few months, this medical services company has seen significant consumer savings in its prescriptions transactions offering alone. Added to this, there has been a significant growth in the number of monthly active consumers and robust increase of subscribers on the company’s platform.

GoodRx Holdings, Inc. Price and EPS Surprise

GoodRx Holdings, Inc. Price and EPS Surprise

GoodRx Holdings, Inc. price-eps-surprise | GoodRx Holdings, Inc. Quote

As per the company’s March 2021 update, the company has attracted millions of visitors to its platform, which has translated into a higher number of consumers for GoodRx’s offerings including manufacturer solutions and telehealth offerings. This is likely to have driven first-quarter 2021 growth.

Further, the company’s two paid subscription programs, GoodRx Gold and the Kroger Rx Savings Club, powered by GoodRx, while providing consumers access to lower prices at participating pharmacies have been recording greater customer acceptance, thereby contributing to the company’s top line over the past few months. This is likely to get reflected in the first-quarter results.

Per the March 2021 update, the company’s telehealth offering, which includes GoodRx Care and Telehealth Marketplace, covers over 150 conditions and also adds a secondary entry point for consumers to access its platform. Further, its manufacturer solutions offerings have been growing at an incredible rate, registering record bookings over the past months. These too are likely to have contributed strongly to the company’s Q1 top line.

Estimate Picture

For first-quarter 2021, the Zacks Consensus Estimate for total revenues of $160.5 million implies a 4.2% improvement from the last reported quarter figure.

The consensus estimate for earnings per share is pegged at 8 cents, implying no change from the last reported quarter figure .

What Our Model Suggests

Our proven model does not conclusively predict an earnings beat for GoodRx this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the chances of an earnings beat.

Earnings ESP: GoodRx has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks Worth a Look

Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.

AmerisourceBergen Corporation has an Earnings ESP of +0.23% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Owens & Minor, Inc. (OMI - Free Report) has an Earnings ESP of +2.41% and a Zacks Rank of 2.

Becton, Dickinson and Company (BDX - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank of 3.

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