Yahoo Finance Results: Hims & Hers Health, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts
Hims & Hers Health, Inc. (NYSE:HIMS) just released its first-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.5% to hit US$278m. Hims & Hers Health also reported a statutory profit of US$0.05, which was an impressive 310% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Hims & Hers Health
After the latest results, the 13 analysts covering Hims & Hers Health are now predicting revenues of US$1.22b in 2024. If met, this would reflect a sizeable 27% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Hims & Hers Health forecast to report a statutory profit of US$0.16 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.19b and earnings per share (EPS) of US$0.081 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a massive increase in earnings per share in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.2% to US$16.33per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Hims & Hers Health, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$13.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Hims & Hers Health's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 38% growth on an annualised basis. This is compared to a historical growth rate of 55% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.7% per year. So it's pretty clear that, while Hims & Hers Health's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Hims & Hers Health's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Hims & Hers Health. Long-term earnings power is much more important than next year's profits. We have forecasts for Hims & Hers Health going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Hims & Hers Health that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
