Every earnings season has its share of winners and losers, as well as top and bottom-line surprises and disappointments. This recent earnings season is no different. Investors are always curious about the best performers, and we will highlight four stocks that absolutely crushed consensus analyst estimates by at least double.
Hims & Hers: GLP-1 Compounds Supercharging Growth for Telehealth Provider
Telehealth platform operator Hims & Hers Health Inc. (NYSE: HIMS) sells sexual health and wellness prescription and non-prescription treatments on its site. From skincare to haircare, anxiety, erectile dysfunction, and weight-loss treatments, users can have online consults with licensed medical practitioners for approvals and have medications shipped privately, online, and discreetly afterward.
GLP-1 Shortage Opened the Doors for Compounded Versions
The company was already growing impressively but recently accelerated growth into warp speed with the addition of compounded GLP-1 injections for weight loss. The GLP-1 revolution has been an oligopoly mainly led by medical sector giants Novo Nordisk A/S (NYSE: NVO) with its Semaglutide brands Ozempic and Wegovy drugs and Eli Lilly & Co. (NYSE: LLY) Tirzepatide brands Mounjaro and Zepbound. Due to the short supply of the $1,300 a month injections, labs were legally permitted to sell compounded versions of GLP-1. This opened the door for Hims & Hers to add compounded GLP-1s to their list of treatments to meet the demand at a much lower $199 per month price point, surging revenues.
Hims & Hers Crushed Consensus EPS Estimates by 3x
In its third quarter of 2024, Hims & Hers reported EPS of 32 cents per share, crushing consensus estimates of 10 cents by 22 cents. Revenues surged 77.1% YoY to $401.56 million, crushing consensus estimates of $382.2 million. Subscribers grew 44% YoY to 2 million. Hims & Hers will be buying a United States-based compounding lab that’s already been registered with the FDA.
Hims & Hers shares also got a boost with Trump's nomination of telehealth proponent Dr. Marty Makary as the new United States Federal Drug Administration (FDA) commissioner.
Alcoa: Aluminum Demand Rising Amid Trump’s Return to the White House
Aluminum producer Alcoa Co. (NYSE: AA) sells alumina, aluminum, and bauxite products worldwide. Aluminum prices have been rising with improving demand and cost efficiencies. The recovery in packaging, automotive,e and electrical industries has been driving demand as inventories remain at historical lows. The secular tailwind of consumer preference for recyclable materials is a boon to its business. The anticipation of Trump's return to the White House and the potential implementation of more tariffs under his America First policies, especially pertaining to Chinese products and materials.
Alcoa Crushes Consensus EPS Estimates by 2x
Alcoa reported Q3 2024 EPS of 57 cents, beating consensus estimates of 25 cents by 32 cents. Revenues rose 11.6% YoY to $2.90 billion, which was short of the $2.97 billion consensus estimates. The company expects the total 2024 Alumina segment production to remain unchanged. However, it increased its shipment projections to range between 12.9 million to 13.1 million metric tons, up 0.2 million metric tons from previous projections due to increased trading volumes.
Vicor: Helping to Power the AI Boom
Vicor Co. (NASDAQ: VICR) is a little-known company that produces modular power components and systems for converting power in the United States. Its power products are used in most industries that use electrical power, and it's getting a boost from the artificial intelligence (AI) boom as its components are picked up to computing components. NVIDIA Co. (NASDAQ: NVDA) initially selected its power converters for the H100 GPU but had to switch to Monolithic Power Systems Inc. (NASDAQ: MPWR) due to its limited manufacturing capacity. The company has been expanding capacity specifically for semiconductors with its new vertically integrated converter house in a package (ChiP) fabrication facility. It also owns over 150 power patents to protect its moat.
Vicor Beats Consensus EPS Estimates by 2x
Vicor reported Q3 2024 EPS of 26 cents, beating consensus estimates of 26 cents by 13 cents. Revenue slipped 13.6% YoY to $93.17 million, beating consensus estimates of $85.23 million. The AI boom will require AI processors to continue to draw more electricity, with the NVIDIA GH200 consuming up to 2,000 watts of power. Vicor purports its VPD with Gen 5 parts remains the only real solution for chips that require more than 1,000 watts.
Stride Defies Bearish Predictions as Short Sellers Get Squeezed
Stride Inc. (NYSE: LRN) is an online education and curriculum platform operator. The company came under scrutiny from short-seller Fuzzy Panda for alleged inflated earnings from the ending of the pandemic Elementary and Secondary School Emergency Relief (ESSER) funding. While the company affirmed the ending of the funding was a minor headwind, it was more than offset by the positive funding environment. Shares of LRN fell 9% to $64.04 on the day Fuzzy Panda released its short seller research report on Oct. 16, 2024. Just five days later, the stock surged 39% higher to $89.71, obliterating any remaining short sellers that stuck around. LRN stock has continued to twist the knife in stuck bears as it drifted higher to $110.44 by Dec. 6, 2024.
Stride’s FQ1 Earnings Report Cooks the Bears With a 4x EPS Beat
On Oct. 22, 2024, Stride reported fiscal Q1 2025 EPS of 94 cents, crushing consensus estimates (and short sellers) by a whopping 72 cents. Revenues rose 14.8% YoY to $551.08 million, crushing consensus estimates of $504.29 million. Enrollments rose 18.5% YoY to 222,600. The company also raised its fiscal Q2 2025 revenues to $560 million to $580 million versus $535.34 million consensus estimates. Fiscal full-year 2025 revenues are expected between $2.225 billion to $2.3 million versus $2.17 billion consensus estimates.
