Hims & Hers Shares Plunge as Costs Tied to Weight-Loss Drugs Squeeze Margins | Global News Avenue

Hims & Hers Shares Plunge as Costs Tied to Weight-Loss Drugs Squeeze Margins
Hims & Hers Healthy Stake (he) Later on Monday, the company reported that the company’s sales margin fell as profits fell due to rising costs and sales volumes exceeded expected sales.

Online healthcare providers’ fourth-quarter revenue almost doubled to $481.4 million, while earnings per share rose to 11 cents from 1% a year ago. Both numbers belong to the average estimates of the analyst, summarized by the visible alpha.

Hims & her stock fell nearly 20% in Monday’s expansion trading after the launch. Their value is approximately worth by the end of the past year to Monday.

However, as costs soared, the company’s gross margin fell from 83% to 77%. Hims & Hers said the cost is more relevant to launching new weight loss products, saying “strategically priced to attract new customers.”

Looking ahead, the company said it expects to earn $520 million to $540 million for the first time on top of analyst consensus.

The report appeared a few days after Hims & hers stock Take a hit after Food and Drug Administration Eli Lillil’s active ingredients theory (Lai)Wegovy and Novo Nordisk (NGOs) Ozempic is no longer lacking supply, which raises concerns about the weight loss power of Hims & Hers, which produces mimic drugs and benefits from the limited availability of certain obesity drugs.