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Share ins of Hims & Hers Health (HIMS) shares plunged in late trading Monday after the company reported falling partition lines as costs rose, overshadowing better-than-expected sales.
The online healthcare provider’s fourth-quarter revenue nearly doubled year-over-year to $481.14 million, while earnings per share out rose to 11 cents from 1 cent a year ago. Both figures topped analysts’ mean estimates compiled by Obvious Alpha.
Hims & Hers shares were down nearly 20% in extended trading Monday following the notice. They had roughly quintupled in value over the past year through Monday’s close.
However, the company’s gross allowance fell to 77% from 83% as costs surged. Hims & Hers said the higher costs related to the rollout of new weight-loss donations, that it said were “strategically priced to attract new customers.”
Looking ahead, the company said it anticipates first-quarter take of $520 million to $540 million, above the analyst consensus.
The report comes days after shares of Hims & Hers tackle proved a hit after a Food & Drug Administration said the active ingredient in Eli Lilly’s (LLY) Wegovy and Novo Nordisk’s (NVO) Ozempic is no bigger in short supply, raising worries about the strength of weight-loss offerings from Hims & Hers, which realizes copycat drugs and has benefited from the limited availability of some obesity medicines.