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Hims & Hers website.
Hims & Hers website

Hims & Hers investors run for the hills despite earnings beat and cheery outlook

Hims & Hers outlook and earnings weren’t enough to quell investors’ fears.

J. Edward Moreno

Hims & Hers Health, the tele-pharmacy known for selling copycat versions of popular weight-loss drugs, tanked in aftermarket trading despite largely meeting Wall Street expectations and giving upbeat guidance.

The company reported earnings per share of $0.12, edging above the $0.11 analysts polled by FactSet were expecting. It also reported $481.1 million in revenue, compared to the $470.3 million analysts expected.

Hims & Hers said it expected revenue for the first quarter of 2025 to be between $520 million and $540 million, compared to the $497 million analysts had penciled in. This was the fifth straight quarter that Hims & Hers turned a profit, and 2024 marked its full profitable year.

Still, investors sent the company’s stock down more than 15% in after-hours trading.

Investors are likely still spooked by the news that the Food and Drug Administration declared that semaglutide, the active ingredient in Novo Nordisk’s Ozempic and Wegovy, is no longer in a shortage, limiting Hims & Hers’ ability to make copycat versions.

Removing it from the shortage list means Hims & Hers can no longer sell exact copies of the drug; it’s only allowed to if it adjusts the drug. Hims & Hers CEO Andrew Dudum said in a Friday statement that the company plans to continue selling compounded semaglutide in the form of “personalized treatments.”

Hims & Hers said in its letter to shareholders that it can sell “personalized titration schedules and dosage levels that are not essentially copies of commercially available medications” even with a shortage in place.

But in a footnote repeated three times in the letter, the company said the FDA move “could constrain our ability to continue providing access to compounded semaglutide on our platform once our current inventory has been sold.”

The company did not explicitly report how much it made selling weight-loss drugs, which it started doing in May 2024. It did say that revenue from non-GLP-1 drugs was $1.2 billion of the $1.4 billion it brought in 2024, suggesting it sold roughly $200 million in copycat weight-loss drugs last year.

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Max Knoblauch

US airlines climb as President Trump shifts his tone about the urgency of ending the shutdown

Shares of US airlines are climbing as the government shutdown stretches into a record 36th day.

Stocks of several carriers, including Delta Air Lines, United Airlines, and American Airlines, rose significantly following an apparent change of tune from President Trump, who on Wednesday told Senate Republicans that they “must get the government back open soon, and really immediately.”

It’s a shift from the president, who’s traveled frequently during the shutdown and stuck firmly to the idea that the administration wouldn’t negotiate with Democrats before the government reopened.

Airlines had tumbled on Tuesday, following comments from Transportation Secretary Duffy that the US could close parts of its airspace amid an air traffic controller shortage that’s been escalated by the shutdown.

markets
Matt Phillips

Top Trump trade hit by Trump tariffs

In the early days of Trump 2.0, Axon, the maker of Taser, body cameras, and other gear for police and security forces, was a top Trump trade.

That is, it was one of the group of companies whose share prices soared on expectations of big changes — in this case a surge of spending on police and immigration enforcement — under the new administration.

And sales of the company’s security products, under its Connected Products division, did rise. But in the just-reported third quarter, costs rose more. And one of those rising costs was the Trump administration’s tariffs.

In its post-earnings conference call, Axon officials blamed tariffs for a large part of the earnings miss that sent the stock plummeting by roughly 20% in the after-hours session Tuesday.

“The impact from tariffs is obviously hitting the Connected Devices business overall. This was the first quarter that we had a full quarter of impact from tariffs,” Axon CFO and COO Brittany Bagley told analysts on the call. “So as we look at the year-over-year step down, that really is attributable to tariffs.”

She continued, “As long as tariffs stay in place, I view that as sort of a onetime adjustment. So now that’s baked into the gross margins.”

Clearly the market didn’t like the sound of that. But perhaps those tariffs may not stay in place.

Late in the morning, Axon sharply cuts its losses on the day — it had been down as much as 20% — as oral arguments in the Supreme Court case to determine the legality of President Trump’s tariff regime got underway. On balance, its seems the administration’s arguments were getting a chilly reception from the justices.

Axon shares extend fall as tariffs hurt the Taser maker's quarterly profit

Axon shares extend fall as tariffs hurt the Taser maker's quarterly profit

And sales of the company’s security products, under its Connected Products division, did rise. But in the just-reported third quarter, costs rose more. And one of those rising costs was the Trump administration’s tariffs.

In its post-earnings conference call, Axon officials blamed tariffs for a large part of the earnings miss that sent the stock plummeting by roughly 20% in the after-hours session Tuesday.

“The impact from tariffs is obviously hitting the Connected Devices business overall. This was the first quarter that we had a full quarter of impact from tariffs,” Axon CFO and COO Brittany Bagley told analysts on the call. “So as we look at the year-over-year step down, that really is attributable to tariffs.”

She continued, “As long as tariffs stay in place, I view that as sort of a onetime adjustment. So now that’s baked into the gross margins.”

Clearly the market didn’t like the sound of that. But perhaps those tariffs may not stay in place.

Late in the morning, Axon sharply cuts its losses on the day — it had been down as much as 20% — as oral arguments in the Supreme Court case to determine the legality of President Trump’s tariff regime got underway. On balance, its seems the administration’s arguments were getting a chilly reception from the justices.

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