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On Tuesday, Truist Securities maintained its Hold rating and $33.00 price target on shares of Hims & Hers (NYSE:HIMS), following the company’s first quarter results for fiscal year 2025. The health and wellness brand reported revenues and adjusted EBITDA that exceeded expectations, primarily driven by its GLP-1 related offerings, which accounted for $42 million of the $47 million revenue beat in the quarter.
The company’s performance led it to reaffirm its full-year outlook, despite surpassing first-quarter estimates. However, Hims & Hers provided a second-quarter revenue guidance that was below consensus, anticipating a sequential decline in GLP-1 related revenues due to a transition of commercial subscriptions and seasonal benefits that were present in the first quarter.
Moreover, Hims & Hers expects some fluctuations and irregular trends in its Sexual Health specialty’s growth as it shifts focus from "on-demand" solutions to subscribers using daily solutions, a strategy that may slow customer acquisition within that segment. Despite these challenges, the company has increased its full-year EBITDA outlook by $15 to $20 million.
The company’s latest financial results were described as mixed by Truist Securities. While they did not meet the optimistic expectations of a significant beat and raise quarter, they were more favorable than the pessimistic view that non-GLP-1 related revenues would continue to face pressure. Notably, non-GLP-1 related revenues saw a 10% sequential increase in the first quarter of 2025 after a 4% sequential decline in the fourth quarter of 2024.
In addition to its financial performance, Hims & Hers emphasized its commitment to compliance with medical guidelines, with the management stating that the company will "play by the rules" and allow providers to personalize doses of Semaglutide based on clinical needs. Truist Securities noted that while many customers could benefit from a personalized dose of GLP-1s, the company’s adherence to proper clinical practices is essential. The firm concluded that its model and price target for Hims & Hers are currently under review following the recent developments.
In other recent news, Hims & Hers Health, Inc. reported a strong first-quarter performance with revenue surging 111% year-over-year to $586 million, surpassing expectations. However, the company missed its earnings per share (EPS) forecast, reporting $0.20 against an expected $0.23. Despite this, the company’s subscriber base grew by 38% year-over-year, reaching nearly 2.4 million subscribers. Hims & Hers provided second-quarter revenue guidance of $530-$550 million, which is below average analyst expectations, but the company maintained its full-year revenue guidance between $2.3 billion and $2.4 billion.
Analysts from BofA Securities maintained an Underperform rating with a $26 price target, expressing caution due to the lower-than-expected second-quarter revenue guidance. Leerink Partners, on the other hand, maintained a Market Perform rating with a $40 price target, noting the effective marketing strategies and weight management brand development. Morgan Stanley (NYSE:MS) reiterated its Equalweight rating and $40 price target, highlighting the significant earnings beat and the company’s expansion into weight loss products.
Hims & Hers also announced a partnership with Novo Nordisk (NYSE:NVO) for the rollout of semaglutide, a diabetes and weight management medication. The company aims to achieve at least $6.5 billion in revenue by 2030, with strategic initiatives including the launch of new hormone-related products by year-end. Despite concerns over gross margins and the potential moderation in revenue growth for certain categories, the company’s long-term growth targets reflect confidence in its strategic direction.
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