Why Hims & Hers Stock Is Soaring After Earnings

Hims & Hers Health, Inc. HIMS shares are trading higher on Tuesday after the company posted better-than-expected fourth-quarter financial results and issued strong guidance.

The Details:

The company reported quarterly earnings of 1 cent per share, beating the analyst consensus estimate of a loss of 3 cents per share.

Quarterly revenues grew 47.5% year over year to $246.62 million, beating the analyst consensus estimate of $245.82 million.

Subscribers grew to 1.5 million, up 48% year-over-year.

Outlook: 

Hims & Hers Health issued strong guidance and said that it expects first-quarter 2024 revenue in the range of $267 million to $272 million, above the $252.548 million estimate. The company expects fiscal year 2024 revenue between $1.17 billion and $1.20 billion, above the $1.099 billion estimate. 

Truist Securities maintained a Hold rating on the stock and raised its price target from $10 to $13. Piper Sandler maintained its Neutral rating, raising its price target from $9 to $11 following the print. 

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Is HIMS A Good Stock To Buy?

Wall Street analysts view Hims & Hers Health HIMS on the whole as a Neutral, given the history of coverage over the past three months. Jailendra Singh from Truist Securities in Hims & Hers Health is the most optimistic, expecting a 30% rise in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Hims & Hers Health rose 53.17%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 47.5% over the past year.

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HIMS Price Action: According to Benzinga Pro, Hims & Hers Health shares are up 31.9% at $13.53 at the time of publication.

Image: Mohamed Hassan from Pixabay