Looking back on healthcare technology stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Hims & Hers Health (NYSE: HIMS) and its peers.
Healthcare Technology
The 8 healthcare technology stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 4.4% while next quarter’s revenue guidance was 1% below.
Thankfully, share prices of the companies have been resilient as they are up 6.9% on average since the latest earnings results.
Hims & Hers Health (NYSE: HIMS)
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE: HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Hims & Hers Health reported revenues of $586 million, up 111% year on year. This print exceeded analysts’ expectations by 8.3%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance beating analysts’ expectations.
“We’re starting 2025 with incredible momentum. Millions of people are turning to us for access to care that is personal, affordable, and has the potential to drive better outcomes,” said Andrew Dudum, co-founder and CEO.
Hims & Hers Health achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. The company added 137,000 customers to reach a total of 2.37 million. Unsurprisingly, the stock is up 45.4% since reporting and currently trades at $60.99.
Best Q1: Premier (NASDAQ: PINC)
Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ: PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes.
Premier reported revenues of $261.4 million, down 8.9% year on year, outperforming analysts’ expectations by 7.4%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
The market seems happy with the results as the stock is up 9.1% since reporting. It currently trades at $22.40.
Is now the time to buy Premier? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Astrana Health (NASDAQ: ASTH)
Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.
Astrana Health reported revenues of $620.4 million, up 53.4% year on year, falling short of analysts’ expectations by 2.5%. It was a slower quarter as it posted full-year EBITDA guidance slightly missing analysts’ expectations.
Astrana Health delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 18.9% since the results and currently trades at $27.08.
Read our full analysis of Astrana Health’s results here.
Evolent Health (NYSE: EVH)
Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE: EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.
Evolent Health reported revenues of $483.6 million, down 24.4% year on year. This result topped analysts’ expectations by 4.9%. Taking a step back, it was a mixed quarter as it also recorded full-year revenue guidance slightly topping analysts’ expectations but a significant miss of analysts’ EPS estimates.
Evolent Health had the slowest revenue growth among its peers. The stock is down 20.2% since reporting and currently trades at $8.59.
Read our full, actionable report on Evolent Health here, it’s free.
GoodRx (NASDAQ: GDRX)
Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ: GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.
GoodRx reported revenues of $203 million, up 2.6% year on year. This print met analysts’ expectations. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and a significant miss of analysts’ customer base estimates.
The company lost 200,000 customers and ended up with a total of 6.4 million. The stock is up 5% since reporting and currently trades at $3.97.
Read our full, actionable report on GoodRx here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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