FIGS adds 10% to extend post-earnings recovery
The shares of FIGS, Inc. (NYSE:FIGS) continued the recent uptrend on Tuesday to add ~10% marking a sharp reversal from an earnings-led selloff early this month when the healthcare apparel company set its outlook below Street forecasts.
FIGS (FIGS) has neared a one-month high with about 4.3M company shares changing hands, compared to the 65-day average of ~4.5M.
With its Q3 2022 results on Nov. 10, FIGS (FIGS) reported in-line earnings, but its revenue exceeded expectations. Yet, the company lowered its 2022 revenue outlook to $495M from $510M – $530M in the prior estimate and below $512.8M in consensus.
Chief Executive Trina Spear noted that macro concerns prompted the management to focus on innovation and customer engagement while controlling cost pressures.
She noted that weaker-than-expected color launches and slow frequency rates driven by macro issues and customers' budgeting constraints led to the guidance cut.
"These softer trends became more pronounced towards the end of September and quarter-to-date," Spear explained during the earnings call, adding, "we expect these trends to continue through the remainder of the quarter, and therefore, we are reducing our outlook."
Once a Wall Street favorite at the time of its IPO, FIGS (FIGS) hit an all-time low on Nov. 21, and its shares have lost ~79% over the past 12 months.
Wall Street has remained bullish on FIGS (FIGS) stock, with an average rating of Buy from analysts in line with Seeking Alpha Author ratings. However, Seeking Alpha's Quant System, which consistently beats the market, rated FIGS as a Strong Sell.