Hims & Hers (HIMS) will release its fourth-quarter fiscal 2025 results after market close on February 23. Analysts expect earnings to decline but sales to rise modestly in the December quarter
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HIMS stock faces backlash for selling copycat weight-loss drugs on its pharmacy platform, along with U.S. Food and Drug Administration (FDA) scrutiny and a lawsuit from Wegovy maker Novo Nordisk (NVO). Investors seek further clarity on these issues during the earnings call. Any negative signals could drive shares lower.
Hims & Hers is a telehealth company, offering prescription medications, wellness products, and online consultations. Year-to-date, HIMS shares have plunged more than 52% due to uncertainty around its GLP-1 drug offerings.
Expectations from Hims & Hers
The Street expects Hims & Hers to post adjusted earnings per share (EPS) of $0.04, much lower than the prior year’s figure of $0.11. Sales are forecast to jump 28.7% year-over-year to $619.20 million. It is worth noting that the company has beaten earnings estimates in six of the past eight quarters.
Moreover, according to TipRanks’ Options Traders Tool, options traders expect about a 14.75% move in either direction for HIMS stock in reaction to Q4 FY25 results. This implied move is significantly higher than the stock’s average post-earnings move (in absolute terms) of 5.04% over the past four quarters.
Analysts’ Views Ahead of Earnings
Deutsche Bank analyst George Hill kept his Hold rating and lowered his price target from $42 to $31, implying 99% upside potential. This adjustment stems from concerns that the company is “under siege” after reversing its planned launch of a low-cost compounded GLP-1 weight-loss pill, a semaglutide-based alternative to Novo’s Wegovy priced at $49 per month.
Canaccord Genuity analyst Maria Ripps also slashed her price target from $68 to $30, implying 92.6% upside. Ripps kept her Buy rating but adjusted the target following Novo’s lawsuit, alleging patent infringement through the “unlawful mass marketing” of unapproved versions of Novo’s semaglutide medicines.
A handful of other analysts also cut their price targets, citing similar reasons.
Is HIMS a Good Stock to Invest In?
On TipRanks, HIMS stock has a Hold consensus rating based on three Buys, six Holds, and two Sell ratings. The average Hims & Hers price target of $32.39 implies 109% upside potential from current levels.
