Hims stock reversed an early drop Tuesday, shrugging off the telehealth platform's lackluster outlook for the current three-month period.
For the second quarter, Hims & Hers Health guided to $530 million to $550 million in sales. Analysts were expecting $565 million, according to FactSet.
Initially, Hims stock skidded nearly 9%. But shares reversed course and gained 18.1%, closing at 49.47. Hims shares continued trading above their 50-day moving average, MarketSurge shows.
Hims Stock Dives On Mixed Report
Overall, the first quarter came out mixed. Hims & Hers earned an adjusted 20 cents per share. That missed expectations for 24 cents, but quadrupled year over year. The company also reported $586 million in sales, beating forecasts for $539 million. Sales skyrocketed 111% vs. the year-ago period.
Promisingly, Hims & Hers reported 38% growth in monthly subscribers to nearly 2.4 million. Each subscriber pays $84 a month, which is up 53% vs. the same three months in 2024.
The news comes shortly after Hims inked a deal with Novo Nordisk to sell Wegovy on its telehealth platform in conjunction with a Hims membership for $599 a month. Hims stock shot up 23% on April 29 following the announcement.
"Over time, we expect wider collaboration across the industry, inclusive of pharmaceutical players, innovative leaders in diagnostic and preventative testing, and world class providers," Hims Chief Executive Andrew Dudum said in a written statement. "We believe this will strengthen our ecosystem and position us to curate a best-in-class offering that can reach tens of millions of people."
Long-Term Outlook
For the year, Hims & Hers guided to $2.3 billion to $2.4 billion in sales. The company also introduced its long-term outlook for $6.5 billion in revenue and $1.3 billion in adjusted earnings before interest, taxes, depreciation and amortization by 2030.
Shares have a perfect IBD Digital Composite Rating of 99. This means Hims stock is outperforming 99% of all stocks when it comes to fundamental and technical measures. Shares also have a strong Relative Strength Rating of 98, a measure of 12-month performance.
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