Hims & Hers Health Faces Pressure Ahead of Earnings Amid Eli Lilly's GLP-1 News

GuruFocus.com
2024-11-01

Hims & Hers Health, Inc. (NYSE:HIMS) has been under pressure this week, with shares declining over 10%, following Eli Lilly's (NYSE:LLY) recent earnings report. Eli Lilly reported a significant miss in GLP-1 revenue, attributing it to stock shortages and increased competition from compounders. This development has raised concerns about the sustainability of compounded GLP-1 medications, which are a part of Hims' product offerings.

Earnings Preview for Hims

Looking ahead to its upcoming earnings report, Hims is expected to present its results next week, with analysts watching closely for signs of demand resilience across its telehealth and wellness offerings. The Street projects revenue of approximately $382 million for the quarter, which represents a 69% growth year-over-year, reflecting solid growth as Hims continues to expand its customer base and offerings. Management has guided for adjusted EBITDA with a midpoint of $38 million, and analysts anticipate a slight profit of around $0.04 per share, an improvement over the same period last year, which reported a loss of $0.04 per share, as the company edges closer to profitability.

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This article first appeared on GuruFocus.

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