Progyny IncPGNY
▼ NegativeCapitalrelevance
Q3 guidance below expectations despite Q2 beat
Impact on stocks 1
Health Care
Progyny IncProgyny Stock Drops After Conservative Q3 Guidance Despite Q2 Beat
Earnings
Progyny shares fell 6% after the fertility benefits company reported second-quarter results and issued third-quarter revenue guidance of 7% to 11% growth that disappointed investors. Second-quarter sales rose 5%, or 11% excluding a large client departure, and adjusted earnings per share jumped 15%, beating Wall Street expectations. Gross profit margins expanded 180 basis points, and the average number of covered members grew 7% to 7.2 million. Management highlighted the new Progyny Select offering, a pooled risk model targeting smaller employers with 100 or more employees, as a potential growth driver. The company also noted near-100% client retention and share count reductions of 8% annually over the past three years.
Progyny IncQ3 guidance below expectations despite Q2 beat