Key Stats for Hims & Hers Health Stock
- Price change for Hims & Hers Health stock in last 6 months: 90%
- $HIMS Stock Price as of Aug. 10: $32
- 52-Week High: $65
- $HIMS Stock Price Target: $29
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What Happened?
Hims & Hers (HIMS) stock fell after the company posted a wider-than-expected net loss for Q2, even though revenue beat expectations.
- Revenue jumped 40% year over year to $753 million, topping Wall Street’s forecast by a small margin.
- But earnings per share came in at a loss of $0.37, missing what analysts had penciled in by a wide margin.
The loss stemmed mostly from rising costs. The company recorded about $81 million in one-time expenses tied to its Eucalyptus acquisition, restructuring in its weight loss business, and legal costs connected to an FTC complaint filed in late July.
That complaint followed nearly three years of cooperation with regulators and several months of settlement talks that ultimately fell apart. Hims & Hers said it plans to fight the case.
On the growth side, there was plenty to like. US revenue growth, excluding the Eucalyptus contribution, accelerated to 16% year over year, a sharp turnaround from a high-single-digit decline just one quarter earlier. That improvement came largely from the company’s March shift toward offering more branded weight loss products.
Eucalyptus, the international acquisition that closed in early June, added roughly $40 million in revenue for the quarter. Hims & Hers now has three international markets running above a $100 million annual revenue pace.
Meanwhile, testosterone treatment has become the fastest-growing category outside of weight loss and is on track to become the company’s sixth US specialty to cross that same $100 million threshold.
The company’s partnership with Novo Nordisk also continues to strengthen, with Novo describing Hims & Hers as one of the largest channels helping patients access its newly launched Wegovy pill.
Despite the earnings miss, Canaccord Genuity reiterated its Buy rating on Hims & Hers stock and kept its price target at $40.00, raising its estimates to account for the Eucalyptus deal.
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What the Market Is Telling Us About Hims & Hers Health Stock
The pullback in Hims & Hers stock shows investors are weighing strong top-line growth against real concerns about spending, margin pressure, and negative cash flow.
A 40% revenue jump is impressive, but a bigger-than-expected loss and ongoing legal battles with the FTC are giving some investors pause.
Still, the bigger picture looks encouraging to analysts like Canaccord, who see accelerating US growth, a fast-scaling international business, and new specialties like testosterone as signs the company’s long-term strategy is working.
That said, after a more than 80% run-up over the past six months, some data suggests Hims & Hers stock is trading above its estimated fair value.
That combination, strong growth paired with a rich valuation and unresolved legal risk, appears to be exactly what’s driving the stock’s volatile reaction to these results.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
