Why GoodRX Shares Are Plummeting Today

GoodRx Holdings Inc GDRX is plunging Tuesday after the company reported worse-than-expected fourth-quarter financial results and issued guidance below estimates. 

GoodRx said revenue increased 39% year-over-year to $213.3 million, which came in below the $217.46 million estimate. The company reported quarterly earnings of 9 cents per share, which came in below the estimate of 10 cents per share. 

GoodRX also announced a $250 million share repurchase program. 

"We see significant opportunities to build on our 2021 growth and success to deliver a very strong 2022, reaching more consumers and providers and bringing more value to each stage of the healthcare journey," GoodRX said.

The company expects first-quarter revenue of about $200 million versus the $227.92 million estimate. 

Analyst Assessment: 

• Credit Suisse analyst Jailendra Singh downgraded GoodRx from an Outperform rating to a Neutral rating and lowered the price target from $41 to $27.
• Cowen & Co. analyst Charles Rhyee downgraded GoodRx from an Outperform rating to a Market Perform rating and lowered the price target from $49 to $22.
• RBC Capital analyst Sean Dodge maintained GoodRx with an Outperform rating and lowered the price target from $50 to $35.
• Goldman Sachs maintained GoodRx with a Buy rating and lowered the price target from $43 to $30.
• SVB Leerink analyst Stephanie Davis maintained GoodRx with an Outperform rating and lowered the price target from $49 to $33.

GDRX Price Action: GoodRX has traded as high as $48.05 over a 52-week period. It's making new lows Tuesday.

The stock was down 40.8% at $16.21 at time of publication.

Photo: jarmoluk from Pixabay.