Progyny's Stock Is Getting Hammered On Mixed Q2 Earnings; Outlook Lagging Street Consensus

Progyny Inc PGNY reported Q2 EPS of $0.19, a turnaround from EPS loss of $(0.01) a year ago, edging out analysts' average expectation of $0.08.
Sales almost doubled to $128.6 million but missed the consensus of $129.31 million, primarily due to increased clients and covered lives.
In addition, revenue in the prior-year period was negatively impacted by the previously reported short-term pause in treatments due to COVID-19.
Fertility benefit services revenue was $92.3 million, +99%, and Pharmacy benefit services revenue increased 98% to $36.4 million.
The gross margin expanded from 18.5% to 23% due to the ongoing favorable impact of previously disclosed contract terms, regular contract renewals, and care management services.
Adjusted EBITDA increased from $3.8 million to $18.5 million, with margin expansion from 5.9% to 14.4%.
Outlook: Progyny expects FY21 sales of $510.0 million - $530.0 million, up 48% - 54% Y/Y, below the consensus of $537.2 million.
It forecasts EPS of $0.43 - $0.50 (consensus $0.41), and adjusted EBITDA of $67.5 million -$72.5 million.
For Q3, the firm sees revenues of $121 million - $130 million and EPS of $0.03 - $0.07, compared to the consensus of $141.3 million and $0.09, respectively.
Price Action: PGNY shares are down 15.1% at $47 during the market session on the last check Friday.