Fertility benefits company Progyny (NASDAQ:PGNY) will be announcing earnings results tomorrow after market close. Here’s what investors should know.
Progyny missed analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $286.6 million, up 2% year on year. It was a softer quarter for the company, with EBITDA guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ sales volume estimates.
Is Progyny a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Progyny’s revenue to grow 2.7% year on year to $277.3 million, slowing from the 26% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Progyny has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Progyny’s peers in the health insurance providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Cencora delivered year-on-year revenue growth of 12.8%, beating analysts’ expectations by 5.2%, and Centene reported revenues up 3.4%, topping estimates by 4.4%. Cencora traded down 2.2% following the results while Centene was also down 6.3%.
Read our full analysis of Cencora’s results here and Centene’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the health insurance providers stocks have shown solid performance, the group has generally underperformed, with share prices down 4.5% on average over the last month. Progyny’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $22.14 (compared to the current share price of $23.48).
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