By Connor Hart

Shares of Progyny slid after the company said consumer habits changed during the third quarter, prompting it to cut to its full-year outlook and guide for a weaker-than-expected fourth quarter.

The stock fell 7%, to $15.99, in postmarket trading Tuesday. Shares, which ended the regular session having edged 0.7% higher, to $17.18, are down 54% since the beginning of the year.

The New York company, which handles fertility care insurance coverage for employers, said that utilization rates were consistent with expectations.

"However, the members that began their journey utilized their benefits in a manner inconsistent with long-term patterns, taking longer to progress through their treatment and, therefore, consuming fewer treatments overall, resulting in lower-than-expected revenue and profitability this quarter," Chief Executive Pete Anevski said.

For the third quarter, Progyny reported a profit of $10.4 million, or 11 cents a share, compared with$15.9 million, or 16 cents a share, in the same quarter a year earlier. Adjusted per-share earnings of 40 cents topped analyst estimates of 38 cents, according to FactSet.

Revenue rose 2% to $286.6 million, missing the $296.9 million that analysts surveyed by FactSet expected.

For the fourth quarter, Progyny expects revenue between $266.2 million and $281.2 million and per-share earnings between 7 cents and 10 cents. Analysts polled by FactSet are expecting revenue of $292.7 million and earnings of 14 cents a share.

For the year, the company lowered its revenue outlook to between $1.14 billion and $1.15 billion from between $1.17 billion and $1.20 billion. It guided for per-share earnings between 52 cents and 56 cents, down from between 57 cents and 64 cents. Analysts are looking for revenue of $1.17 billion and earnings of 62 cents a share.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

November 12, 2024 18:37 ET (23:37 GMT)

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