Hims & Hers Stock Is Falling Ahead of Earnings. What to Expect. — Barrons.com

What happened

Hims & Hers Health is due to report third-quarter results, and its management will discuss them on a conference call at 5 p.m. Eastern time. Analysts expect earnings of 6 cents per share and revenue of $893 million, while subscriber numbers are expected to exceed 3 million.

Confirmed

Global impact / market context

The earnings report may show whether Hims’ existing telehealth business is still growing as investors assess its new Lilly drug agreement. Subscriber growth and revenue indicate how much demand the platform is attracting; the agreement could add sales, but prescriptions depend on providers deciding treatment is appropriate.

Analyst inference

The shares were down 28% this year and 43% over the past 12 months, despite Friday’s 8% gain after the Lilly agreement was announced. Monday’s decline ahead of results leaves the report as a near-term test of whether expected subscriber and revenue growth can support investor confidence.

Confirmed

What to watch

1. Compare reported third-quarter earnings and revenue with analysts’ expectations of 6 cents per share and $893 million, respectively; a shortfall could weaken confidence in the business. Analyst inference
2. Check whether subscribers rose above 3 million from 2.89 million in the second quarter, as analysts expect; subscriber growth can support future sales through the platform. Analyst inference
3. Listen for management’s discussion of the Lilly agreement during the scheduled 5 p.m. Eastern conference call, including how prescriptions and home delivery will work. Confirmed

Evidence

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