Shares of California-based telehealth firm Hims & Hers Health (HIMS) gained 13.6% in early trade on Thursday after the company reported better-than-expected financial results for the second quarter of 2021. Hims & Hers enables consumers to access medical treatment for dermatology, sexual health, mental health and primary care, among others, by connecting them to licensed healthcare professionals.
The company reported a loss of $0.05 per share, narrower than the Street’s loss estimate of $0.10 per share but wider than the year-ago loss of $0.03 per share. Quarterly revenues surged 69% year-over-year to $60.7 million, surpassing analysts’ expectations of $56.49 million. The rise was driven by growth across all business segments.
For the third quarter, Hims & Hers expects revenues to be in the range of $69 million to $71 million. Furthermore, it projects revenues to lie between $251 million and $255 million in 2021. (See Hims & Hers stock chart on TipRanks)
The CEO of Hims & Hers Health, Andrew Dudum, said, “We are building Hims & Hers into the new front door to healthcare. A new front door that will span dozens of medical specialties, welcoming customers of all demographics into a unified consumer platform that looks and feels and talks to them in a way that gives them the confidence they’re in the right hands.”
Last month, BofA Securities analyst Michael Cherny initiated coverage on the stock with a Hold rating and a price target of $12 (33.9% upside potential). The analyst said, “Hims has strong growth potential, but the company operates in a highly competitive market with multiple well-established incumbents, painting the risk-reward potential as balanced.”
Overall, the stock has a Moderate Buy consensus based on 2 Buys and 2 Holds. The average Hims & Hers Health price target of $13.5 implies 56.8% upside potential. Shares of the company have lost 66.3% over the past year.
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