Why Is GoodRx (GDRX) Stock Down Today?

GoodRx (NASDAQ:GDRX) stock is slipping on Tuesday despite the healthcare company beating out estimates for the first quarter of 2022. So what’s keeping the shares down today?

Magnifying glass looking at the GoodRx logo on the company Website representing GDRX stock.

Source: II.studio / Shutterstock.com

First, let’s go over the company’s earnings report. It starts with adjusted earnings per share of 10 cents. That’s better than the 8 cents per share that Wall Street was expecting. It’s also an improvement over the 7 cents per share reported in Q1 2021.

Next up is GoodRx’s revenue of $203.33 million. This is another positive for the company next to analysts’ revenue estimate of $200.63 million. It also represents a 27% year-over-year increase compared to $160.4 million.

Unfortunately, the news turns bad as we head into the company’s outlook. This starts with its Q2 2022 revenue estimate of roughly $190 million. That would see it missing Wall Street’s revenue estimate of $215.62 million for the quarter.

And it doesn’t get any better with the company releasing the following warning in its letter to GDRX shareholders.

“At this time, we believe it is unlikely we will be able to achieve the FY 2022 guidance we provided on our fourth quarter earnings call. We will not be providing full year expectations at this time as the full year impact of the grocer issue is difficult to estimate because there are several variables including, among others, eventual consumer pricing and returning usage levels that have yet to be determined.”

All of this news has GDRX seeing heavy trading today. As of this writing, over 6 million shares of the stock have changed hands. That’s already above the company’s daily average trading volume of around 2.8 million shares.

GDRX stock is down 27.7% as of Tuesday morning.

Investors on the lookout for more stock market news are in luck!

We’ve got all the latest stock news traders need to know about for Tuesday! That includes what’s happening with shares of Biora Therapeutics (NASDAQ:BIOR), General Motors (NYSE:GM), and Bausch Health (NYSE:BHC) stock today. You can learn more on these matters by checking out the links below!

More Tuesday Stock Market News

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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