Shares of Hims & Hers Health fell 10% in afterhours trading on Monday after the telehealth company reported second-quarter revenue that missed Wall Street estimates and issued a cautious guidance amid legal and regulatory scrutiny over its compounded weight-loss drug offerings.
Revenue for the quarter rose to $544.8 million but came in below the consensus estimate of $549.9 million.
The stock has declined in recently as investor focus has sharpened around its GLP-1 business. Hims sells compounded versions of semaglutide, the active ingredient in blockbuster drugs Wegovy and Ozempic, both made by Novo Nordisk (NYSE:NVO).
Last week, Novo cut its annual sales forecast and blamed weaker U.S. demand for its GLP-1 drugs in part on the widespread availability of compounded alternatives. It also stepped up legal pressure on platforms that sells compounded versions calling it unlawful and unsafe.
Novo recently terminated a short-lived partnership with Hims and has filed lawsuits targeting compounded semaglutide sales.
Adjusted earnings per share of $0.17 beat expectations by 2 cents.
For the third quarter, the company forecast revenue between $570 million and $590 million, bracketing the $584.2 million analyst consensus.
Full-year revenue is expected to range between $2.3 billion and $2.4 billion, broadly in line with the $2.36 billion analysts were looking for.
source https://www.investing.com/news/earnings/hims--hers-slides-after-q2-revenue-miss-cautious-guidance-4168772
