BUZZ-Hims & Hers shares plunge due to margin pressure, performance outlook downgraded

Latest Developments

November 10 - ** Shares of telemedicine company Hims & Hers Health under HIMS.N fell by 13.12% to $19.93, hitting a seven-month low

** The company expects (link) annual revenue to be between $3.13 billion and $3.15 billion, compared to a previous forecast of $3.1 billion to $3.3 billion

** Adjusted core profit guidance was lowered from the previous range of $275 million to $325 million, to $257 million to $277 million

** According to data from London Stock Exchange Group (LSEG), fourth-quarter revenue is expected to be $875 million to $895 million, while the market consensus was $953.5 million

** Morningstar said that as the business continues to show signs of weakness, the company has been disappointing in several areas

** Net loss for the third quarter was $33 million, compared to a net profit of $15.8 million for the same period last year

** Quarterly gross margin fell to 57% from 74% a year ago

** Brokerage Leerink said: "While several initiatives are underway, it is now urgent to regain profitability," and lowered its price target from $30 to $24

** At least two other brokerages have also cut their price targets

**Including Tuesday's movement, the stock has fallen 38% year-to-date

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