Progyny, Inc. (NASDAQ:PGNY) reported worse-than-expected third-quarter sales results and issued FY24 revenue guidance below estimates.
Progyny reported quarterly earnings of 11 cents per share which missed the analyst consensus estimate of 13 cents per share. The company reported quarterly sales of $286.63 million which missed the analyst consensus estimate of $296.88 million.
"The utilization rate in the third quarter was consistent with the expectations we outlined in August. However, the members that began their journey utilized their benefits in a manner inconsistent with long-term patterns, taking longer to progress through their treatment and, therefore, consuming fewer treatments overall, resulting in lower-than-expected revenue and profitability this quarter," said Pete Anevski, Chief Executive Officer of Progyny. "Even though our recent results relative to expectations have been disappointing to us, the business remains fundamentally very strong, and the success of our most recent selling season further validates our leading position in a large, growing and increasingly impactful market."
Progyny said it sees FY24 earnings of $1.54 to $1.57 per share on revenue of $1.135 billion to $1.150 billion.
Progyny shares dipped 15.1% to trade at $14.59 on Wednesday.
These analysts made changes to their price targets on Progyny following earnings announcement.
- Truist Securities analyst Jailendra Singh downgraded Progyny from Buy to Hold and lowered the price target from $26 to $19.
- Canaccord Genuity analyst Richard Close maintained Progyny with a Hold and lowered the price target from $18 to $17.
Considering buying PGNY stock? Here's what analysts think:
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