Why Progyny Stock Dropped Today
Shares of leading fertility benefits specialist Progyny (NASDAQ: PGNY) dropped 19% as of 1 p.m. EDT on Wednesday, according to data provided by S&P Global Market Intelligence.
While Progyny beat analysts' expectations for $0.40 in adjusted earnings per share (EPS) by $0.03, its revenue of $304 million was ever-so-slightly below the consensus of $305 for the second quarter. However, what really seemed to have worried the markets was the company's updated guidance for 2024 revenue growth between 7% and 10% -- a large drop from its projection of 13% to 17% three months ago.
Providing assisted reproduction technology (ART) and fertility benefits, Progyny has grown its revenue nearly sevenfold since 2019 and is now 6.4 million members strong. However, after growing sales by more than 60% as recently as 2022, the company has seen growth slow for six consecutive quarters to its most recent increase of just 8% in Q2 2024.
Source Fool.com
