Progyny slides to 3-month low after Q4 rev miss
28/02/2024 19:40
** Progyny's PGNY.O stock down 16.5% at $34.07 on Weds
after fertility benefits management co's qtrly rev was shy of
expectations
** PGNY drops as much as 18.9% to $33.07, lowest since Nov
22, and tracking biggest one-day pct drop in 3 years
** Co late Tues reported Q4 rev grew 26% yr/yr to $269.9
mln, missing LSEG consensus est of ~$274.1 mln
** On the earnings call, CEO Peter Anevski said while
fertility utilization services are typically lower in Q4 due to
the holidays, "the actual decline in December was slightly more
than what we had anticipated."
** BTIG analyst David Larsen pointed out in note to clients
that fertility rev growth was up 20% yr/yr in 4Q23, compared to
+35% yr/yr in 3Q23 and +60% yr/yr in 4Q22
** Still, Larsen maintains "buy" rating and raised his PT by
$5 to $50, saying "demand continues to be strong"
** Truist Secs trimmed its PT by $1 to $46 and Leerink
Partners also reduced its PT by $1 to $48
** Avg rating among 10 analysts is "buy" and median PT is
$47 - LSEG
** PGNY's stock tumbled last week after in-vitro
fertilization (IVF) providers in Alabama halted treatments
following state Supreme Court ruling that frozen embryos are
children
** On the investor call Tues, CFO Mark Livingston said the
co is "not seeing any impact" on its overall business from the
Alabama decision
** With the move on Weds, shares are down 8% YTD after ~19%
gain in 2023
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))