We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the last reported quarter, the company’s earnings per share (EPS) of 11 cents missed the Zacks Consensus Estimate by 8.3%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on two occasions, missed once and broke even in the other, delivering an earnings surprise of 40.4%, on average. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Let’s check out the factors that have shaped HIMS’ performance prior to this announcement.
Factors to Note Before Hims & Hers Reports
Hims & Hers has consistently witnessed strong market acceptance of its range of curated health and wellness products and services over the past few months. The company ended the fourth quarter of 2024 with nearly 2.2 million subscribers (up 45% year over year). Monthly online revenue per average subscriber increased 37.7% year over year in the fourth quarter, primarily resulting from the scaling of GLP-1s and subscribers shifting to more premium personalized offerings. As a result of growth in subscribers, Hims & Hers generated 2.8 million net orders for the reported quarter (up 22.1% year over year). For the fourth quarter of 2024, average order value was up 63.1% year over year. We expect the company to continue to have gained subscribers in the first quarter of 2025, thereby driving up its revenues.
On the fourth-quarter earnings call in February, management stated that the company expanded its brand from one that's focused on niche men's categories to include specialties from men's and women's health, dermatology, mental health, adjunctive cardiovascular support, and most recently, metabolic health. This is likely to have aided Hims & Hers in serving a wider population, thereby paving the way for higher revenues in the to-be-reported quarter.
HIMS’ Estimate Picture
For first-quarter 2025, the Zacks Consensus Estimate for revenues is pegged at $538.1 million, implying an improvement of 93.4% from the prior-year quarter’s reported figure.
The consensus estimate for EPS is pegged at 12 cents, indicating a surge of 140% from the prior-year period’s reported number.
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 chances of an earnings beat.
Earnings ESP: Hims & Hers has an Earnings ESP of +34.35%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Over the past three months, Hims & Hers’ shares have lost 7.1%, outperforming Medical Info Systems’ 12.5% decline. HIMS’ shares also outperformed the Zacks Medical sector and the S&P 500’s decreases of 8.6% and 7.3%, respectively.
Three Months Price Comparison
Image Source: Zacks Investment Research
Hims & Hers’ peers like Veeva Systems Inc. (VEEV - Free Report) have outperformed the company, while its other peers like Inspire Medical Systems, Inc. (INSP - Free Report) and Omnicell, Inc. (OMCL - Free Report) have underperformed the company. VEEV, INSP and OMCL’s shares are down 0.5%, 17.7% and 27.7%, respectively, in the same time frame.
Hims & Hers’ Key Valuation Metric
From a valuation standpoint, HIMS’ forward 12-month price-to-sales (P/S) is 3.2X, a discount to the industry's average of 5.3X.
Image Source: Zacks Investment Research
The company is trading at a discount to its peers, Veeva Systems and Inspire Medical. However, Hims & Hers is trading at a premium to its other peer, Omnicell. Veeva Systems and Inspire Medical’s P/S currently stand at 12X and 4.7X, respectively, while the ratio for Omnicell stands at 1.3X.
This suggests that investors may be paying a lower price relative to the company's expected sales growth.
Long-Term Investment Visibility
Yesterday, Hims & Hers announced a long-term collaboration with Novo Nordisk designed to make proven obesity care and treatments more accessible, affordable and connected across the nation. As a first step, Americans can now access NovoCare Pharmacy directly through the Hims & Hers platform, with a bundled offering of all dose strengths of Wegovy and a Hims & Hers membership. At a single, unified price starting at $599 per month, individuals may be prescribed Wegovy, alongside HIMS’ approach to care. The offering is available this week on the Hims & Hers platform. This is likely to boost the company’s revenues going forward.
In February, HIMS acquired a U.S.-based peptide facility based in California, which will likely enable it to strengthen the long-term durability of its domestic supply chain to meet the growing demand from Americans for personalized healthcare and treatment options. The same month, the company announced its plans to introduce at-home lab testing through its platform. Hims & Hers has acquired an at-home lab testing facility, Sigmund NJ LLC, marketed as Trybe Labs, which will likely allow it to support at-home blood draws and more comprehensive whole-body testing. These raise our optimism about the stock.
Our Final Take
There is no denying that Hims & Hers sits favorably in terms of core business strength, earnings prowess, robust financial footing and global opportunities. The stock’s strong core growth prospects are a good reason for existing investors to retain shares for potential future gains.
For those exploring to make new additions to their portfolios, the valuation indicates superior performance expectations compared with its industry and sector peers. It is still valued lower than the broader market, which suggests potential room for growth if it can align more closely with overall market performance. As there are chances of beating estimates, it would be a wise choice to add the stock to one’s portfolio before the earnings. However, if investors are already holding the stock, it would be prudent to hold on to it at present. The favorable Zacks Style Score of A suggests continued uptrend potential for HIMS.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Can Sustained Product Demand Drive HIMS Stock Before Q1 Earnings?
Hims & Hers Health, Inc. (HIMS - Free Report) is scheduled to report first-quarter 2025 results on May 5, after the closing bell.
In the last reported quarter, the company’s earnings per share (EPS) of 11 cents missed the Zacks Consensus Estimate by 8.3%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on two occasions, missed once and broke even in the other, delivering an earnings surprise of 40.4%, on average. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Let’s check out the factors that have shaped HIMS’ performance prior to this announcement.
Factors to Note Before Hims & Hers Reports
Hims & Hers has consistently witnessed strong market acceptance of its range of curated health and wellness products and services over the past few months. The company ended the fourth quarter of 2024 with nearly 2.2 million subscribers (up 45% year over year). Monthly online revenue per average subscriber increased 37.7% year over year in the fourth quarter, primarily resulting from the scaling of GLP-1s and subscribers shifting to more premium personalized offerings. As a result of growth in subscribers, Hims & Hers generated 2.8 million net orders for the reported quarter (up 22.1% year over year). For the fourth quarter of 2024, average order value was up 63.1% year over year. We expect the company to continue to have gained subscribers in the first quarter of 2025, thereby driving up its revenues.
On the fourth-quarter earnings call in February, management stated that the company expanded its brand from one that's focused on niche men's categories to include specialties from men's and women's health, dermatology, mental health, adjunctive cardiovascular support, and most recently, metabolic health. This is likely to have aided Hims & Hers in serving a wider population, thereby paving the way for higher revenues in the to-be-reported quarter.
HIMS’ Estimate Picture
For first-quarter 2025, the Zacks Consensus Estimate for revenues is pegged at $538.1 million, implying an improvement of 93.4% from the prior-year quarter’s reported figure.
The consensus estimate for EPS is pegged at 12 cents, indicating a surge of 140% from the prior-year period’s reported number.
Hims & Hers Health, Inc. Price and EPS Surprise
Hims & Hers Health, Inc. price-eps-surprise | Hims & Hers Health, Inc. Quote
What Our Model Suggests About Hims & Hers
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 chances of an earnings beat.
Earnings ESP: Hims & Hers has an Earnings ESP of +34.35%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
HIMS’ Share Price Performance
Over the past three months, Hims & Hers’ shares have lost 7.1%, outperforming Medical Info Systems’ 12.5% decline. HIMS’ shares also outperformed the Zacks Medical sector and the S&P 500’s decreases of 8.6% and 7.3%, respectively.
Three Months Price Comparison
Image Source: Zacks Investment Research
Hims & Hers’ peers like Veeva Systems Inc. (VEEV - Free Report) have outperformed the company, while its other peers like Inspire Medical Systems, Inc. (INSP - Free Report) and Omnicell, Inc. (OMCL - Free Report) have underperformed the company. VEEV, INSP and OMCL’s shares are down 0.5%, 17.7% and 27.7%, respectively, in the same time frame.
Hims & Hers’ Key Valuation Metric
From a valuation standpoint, HIMS’ forward 12-month price-to-sales (P/S) is 3.2X, a discount to the industry's average of 5.3X.
Image Source: Zacks Investment Research
The company is trading at a discount to its peers, Veeva Systems and Inspire Medical. However, Hims & Hers is trading at a premium to its other peer, Omnicell. Veeva Systems and Inspire Medical’s P/S currently stand at 12X and 4.7X, respectively, while the ratio for Omnicell stands at 1.3X.
This suggests that investors may be paying a lower price relative to the company's expected sales growth.
Long-Term Investment Visibility
Yesterday, Hims & Hers announced a long-term collaboration with Novo Nordisk designed to make proven obesity care and treatments more accessible, affordable and connected across the nation. As a first step, Americans can now access NovoCare Pharmacy directly through the Hims & Hers platform, with a bundled offering of all dose strengths of Wegovy and a Hims & Hers membership. At a single, unified price starting at $599 per month, individuals may be prescribed Wegovy, alongside HIMS’ approach to care. The offering is available this week on the Hims & Hers platform. This is likely to boost the company’s revenues going forward.
In February, HIMS acquired a U.S.-based peptide facility based in California, which will likely enable it to strengthen the long-term durability of its domestic supply chain to meet the growing demand from Americans for personalized healthcare and treatment options. The same month, the company announced its plans to introduce at-home lab testing through its platform. Hims & Hers has acquired an at-home lab testing facility, Sigmund NJ LLC, marketed as Trybe Labs, which will likely allow it to support at-home blood draws and more comprehensive whole-body testing. These raise our optimism about the stock.
Our Final Take
There is no denying that Hims & Hers sits favorably in terms of core business strength, earnings prowess, robust financial footing and global opportunities. The stock’s strong core growth prospects are a good reason for existing investors to retain shares for potential future gains.
For those exploring to make new additions to their portfolios, the valuation indicates superior performance expectations compared with its industry and sector peers. It is still valued lower than the broader market, which suggests potential room for growth if it can align more closely with overall market performance. As there are chances of beating estimates, it would be a wise choice to add the stock to one’s portfolio before the earnings. However, if investors are already holding the stock, it would be prudent to hold on to it at present. The favorable Zacks Style Score of A suggests continued uptrend potential for HIMS.