Every earnings season has its winners and losers, as well as earnings and earnings surprises and disappointments. This recent earnings season is no different. Investors are always interested in knowing which stocks are outperforming, and we’ll highlight four stocks that absolutely beat analyst consensus estimates by at least double.
Hims & Hers: GLP-1 Compounds Accelerate Telehealth Provider Growth
Telemedicine platform operator Hims and Hers Health Inc. New York Stock Exchange: HIMS sells prescription and over-the-counter sexual health and wellness products on its website. From skin care to hair care, anxiety treatment, erectile dysfunction and weight loss treatments, users can receive online consultations with licensed practitioners for approvals and then receive medications privately, online and confidentially.
GLP-1 deficiency has opened the door to complex versions
The company was already growing impressively, but recently accelerated its growth with the addition of GLP-1 injections for weight loss. The GLP-1 revolution has become an oligopoly led primarily by medical sector giants. Novo Nordisk A/S CHEEK: NGO with semaglutide drugs Ozempic and Wegovy and Eli Lilly and Co. New York Stock Exchange: LLI Tirzepatide releases Mounjaro and Zepbound. Due to a shortage of $1,300-a-month injections, labs were legally allowed to sell complex versions of GLP-1. This opened the door for Hims & Hers to add compounded GLP-1 drugs to its list of treatments to meet demand at a much lower price of $199 per month, resulting in increased revenue.
Hims & Hers cut consensus earnings per share estimate by 3x
For the third quarter of 2024, Hims & Hers reported earnings per share of 32 cents per share, beating the consensus estimate of 10 cents by 22 cents. Revenue rose 77.1% YoY to $401.56 million, beating consensus estimates of $382.2 million. Subscribers grew 44% YoY to 2 million. Hims & Hers will buy a US-based formulation laboratory that is already registered with the FDA.
Hims & Hers shares also rose thanks to Trump’s nomination of telemedicine advocate Dr. Marty Macari new commissioner of the US Federal Drug Administration (FDA).
Alcoa: Aluminum demand grows amid Trump’s return to the White House
Aluminum manufacturer Alcoa Company. New York Stock Exchange: AA sells alumina, aluminum and bauxite products worldwide. Aluminum prices are rising along with increased demand and economic efficiency. A recovery in the packaging, automotive, electronics and electrical equipment industries is driving demand as inventories remain at historic lows. Consumers’ continued preference for recyclable materials is a boon for its business. Anticipating Trump’s return to the White House and the potential imposition of additional tariffs as part of his “America First” policy, especially on Chinese products and materials.
Alcoa halved consensus earnings per share estimate
Alcoa reported third-quarter 2024 earnings per share of 57 cents, beating the consensus estimate of 25 cents by 32 cents. Revenue rose 11.6% YoY to $2.90 billion, below consensus estimates of $2.97 billion. The company expects total alumina segment production to remain flat in 2024. However, the company increased its supply forecasts to 12.9 million to 13.1 million metric tons, up 0.2 million metric tons from previous forecasts due to higher trade volumes.
Vicor: Helping Power the Artificial Intelligence Boom
Vikor company NASDAQ: WIKR is a little-known company that produces modular power components and power conversion systems in the United States. Its energy products are used in most industries that use electricity, and it is getting a boost from the artificial intelligence (AI) boom as its components match computing components. NVIDIA Company NASDAQ: NVDA originally chose power converters for the H100 GPU, but was forced to switch to Monolithic Energy Systems, Inc. NASDAQ: MPWR due to limited production capacity. The company is expanding capacity specifically for semiconductors with its new vertically integrated in-package (ChiP) converter shop. It also holds more than 150 electrical patents to protect its moat.
Vicor beats consensus EPS by 2x
Vicor reported third-quarter 2024 earnings per share of 26 cents, beating the consensus estimate of 26 cents by 13 cents. Revenue fell 13.6% YoY to $93.17 million, beating the consensus estimate of $85.23 million. The AI boom will require AI processors to continue to consume more power, with the NVIDIA GH200 consuming up to 2,000 watts of power. Vicor says its VPD with Gen 5 parts remains the only viable solution for chips that require more than 1000 Watts.
Stride denies bearish forecasts as short sellers get squeezed
Stride Inc. New York Stock Exchange: LRN is an operator of an online learning platform and training programs. The company has come under scrutiny from short seller Fuzzy Panda for allegedly overstating earnings as a result of the pandemic’s withdrawal of funding for the Elementary and Secondary School Emergency Relief (ESSER) program. While the company confirmed that the funding stop was a minor headwind, it was more than offset by a positive funding environment. LRN shares fell 9% to $64.04 on the day Fuzzy Panda released its short selling research report on October 16, 2024. Just five days later, shares rose 39% to $89.71, wiping out any remaining short sellers. LRN stock continued to twist the knife into stuck bears as it rose to $110.44 by December 6, 2024.
Stride’s Q1 Earnings Report Prepares Bears With EPS 4X
On October 22, 2024, Stride reported first-quarter fiscal 2025 earnings per share of 94 cents, beating consensus estimates (and short sellers) by a whopping 72 cents. Revenue rose 14.8% year-on-year to $551.08 million, beating consensus estimates of $504.29 million. Enrollment grew 18.5% year-on-year to 222,600. The company also increased fiscal 2025 second quarter revenue to $560 million to $580 million versus the consensus estimate of $535.34 million. Full fiscal 2025 revenue is expected to range from $2.225 billion to $2.3 million versus consensus forecast of $2.17 billion.
Before you consider Hims & Hers Health, you’ll want to hear this.
MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market catches on… and Hims & Hers Health wasn’t on the list.
While Hims & Hers Health currently has a Hold rating among analysts, the top-rated analysts think these five stocks are Outperform Buys.
View five stocks here
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