On August 11, Hims & Hers Health Inc. declined 7.3% in regular trading, trading at $29.52/share, with turnover of $48.9 million.
On the news front, the company reported Q2 earnings with a per-share loss of $0.37, far exceeding the market consensus estimate of a $0.03-$0.05 loss, and sharply deteriorating from earnings of $0.17 per share in the year-ago quarter. Despite revenue of $753 million representing 38% year-over-year growth and beating expectations, gross margin plunged from 76% to 64%. Management attributed the margin compression to international business expansion and branded GLP-1 weight loss drug sales, which generated restructuring costs. The CFO indicated gross margins will remain below historical levels for the foreseeable future. The company raised its full-year revenue guidance to $3.1-$3.3 billion from a prior $2.8-$3.0 billion range. Morgan Stanley raised its price target to $28 from $21 while maintaining an Equalweight rating. Nevertheless, the magnitude of the loss overwhelmed positive revenue trends, pressuring shares.
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