Hims & Hers Health's Model 'Proving Effective': 2 Analysts Examine Q1 Earnings

Zinger Key Points
  • Hims & Hers Health’s Q1 adj. EBITDA beat was driven by “impressive” SG&A leverage, one analyst said.
  • The company guided to revenue growth of 44%-51% Y/Y, versus consensus of 44%, another analyst added.

Shares of Hims & Hers Health Inc HIMS were climbing in early trading on Tuesday. The personal-care products company reported upbeat results for the first quarter.

The results be reported amid an exciting earnings season. Here are some key analyst expectations.

  • Piper Sandler analyst Korinne Wolfmeyer maintained a Neutral rating, while raising the price target from $11 to $13.
  • Truist Securities analyst Jailendra Singh reaffirmed a Hold rating and price target of $13.

Check out other analyst stock ratings.

Piper Sandler: Hims & Hers Health reported total revenue of $278.2 million. That represents 46% year-on-year growth and higher than Street expectations of $270.4 million, Wolfmeyer said in a note.

The San Francisco-based company also delivered a beat on adjusted EBITDA, "driven entirely by impressive SG&A leverage," he added.

The results indicate that the company's model is "proving effective," the analyst wrote. Management raised their 2024 revenue and adjusted EBITDA guidance by more than the beat, from $1.17-$1.20 billion to $1.20-$1.23 billion and from $100-$120 million to $120-$135 million, respectively.

The company delivered a strong quarter "with little to pick at." In case the "top line momentum doesn’t hold, the margin progression is at risk," Wolfmeyer further stated.

Truist Securities: Hims & Hers Health reported a beat and raise quarter, "driven by a strong subscriber growth, continuing increase in the percentage of subscribers opting for personalized solutions, and efficiency improvements," Singh wrote in a note.

Subscribers grew by 41% to 1.709 billion, with increasing penetration of personalized solutions, the analyst stated.

"This year, HIMS will continue to expand its range of personalized solutions in both established and newer specialties in areas like Weight Loss and Dermatology to enhance the customer experience with more user-friendly form factors and eventually, a broader selection of multi-action offerings," he further wrote.

HIMS Price Action: Shares of Hims & Hers Health had risen by 5.97% to $12.34 at the time of publication on Tuesday.

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