3 Top Stocks Crushing Q3 Earnings With Strong 2024 Guidance

Key Points

• Hims & Hers tripled consensus EPS estimates in Q3 while raising Q4 guidance thanks to its compounded GLP-1 treatment business.
• Payoneer is profiting off the growth in cross-border business payment volumes, which is growing 25% YoY.
• Astera Labs is riding demand in faster connectivity for AI workloads at data centers and on the cloud.

Every earnings season has its share of outperformers, companies that report blowout quarters and raise their forecasts. The market reacts quickly sending shares sharply higher. The third quarter of 2024 earnings season is no different. If you want to track the best of the best when it comes to crushing consensus estimates, here are 3 stocks to keep on your radar.

Hims & Hers Health: Riding the GLP-1 Supply Shortage 

Telehealth platform operator Hims & Hers Health Inc. NYSE: HIMS has been a growth machine in terms of revenue and subscribers. The platform offers personalized health solutions and prescriptions for erectile dysfunction, hair loss, weight loss, sexual health, behavioral health, and skin care. Users can get prescriptions delivered discreetly upon an online medical consult. The medical sector fintech puts users on an automatic delivery schedule with recurring billing for their treatments.

Hims & Hers started offering GLP-1 compounds in May of 2024, which are non-FDA evaluated substitute treatments like compounded Semaglutide during periods of a supply shortage of the branded medicine. In this case, Novo Nordisk A/S NYSE: NVO Semaglutide medicine Ozempic and Wegovy and Eli Lily & Co. NYSE: LLY dual agonist GLP-1 drugs Mounjaro and Zepbound. This has caused a surge in revenue, as evidenced by its blowout third quarter of 2024 results.

Hims & Hers reported Q3 2024 EPS of 32 cents, tripling consensus estimates for 10 cents. Revenue skyrocketed 77.1% YoY to $401.56 million, crushing $382.2 million consensus estimates. Subscribers grew 44% YoY to 2 million. The company provided upside guidance for Q4 2024 revenue of $465 million to $470 million, crushing 4421.12 million consensus estimates.

Eli Lilly petitioned the FDA to curtail compounded Tirzepatide sales, claiming there was no longer a supply shortage and for safety concerns since compounds aren’t regulated. The FDA decided to limit the sales of compounded GLP-1 treatments. This triggered a lawsuit from the Outsourcing Facilities Association, which caused the FDA to reconsider taking Tirzepatide off the drug shortage list.

Hims & Hers sells its compounded GLP-1 injections for as low as $199 a month versus $1,100 or more for the monthly injections of branded GLP-1 drugs like Wegovy and  Zepbound. For now, Hims & Hers continues to sell its version of GLP-1 compounds, and they have announced the purchase of a U.S. compounding facility. Hims & Hers plans to bring liraglutide, the first generic GLP-1, to market in 2025.

Payoneer: Profiting on Cross-Border Business Payments  

Digital payment services provider Payoneer Global Inc. NASDAQ: PAYO offers a payment infrastructure platform enabling customers to manage cross-border payments. Companies with international business use the platform as a one-stop global multicurrency account to service their accounts payable and accounts receivable needs. Payoneer enables freelancers on popular platforms like Upwork Inc. NASDAQ: UPWK and Fiverr International Ltd. NYSE: FVRR to receive payments from international clients. The company is building a full-service financial stack for global small and medium-sized businesses (SMBs).

Payoneer reported Q3 2024 EPS of 11 cents, more than doubling consensus estimates for 4 cents. Revenues surged 19.4% YoY to a record $248.3 million, beating consensus estimates for $225.44 million. Transaction volume grew 25% YoY.

Payoneer issued upside full-year 2024 revenue guidance of $950 million to $960 million versus $926.13 million consensus estimates. Adjusted EBITDA is expected between $255 million to $265 million. Payoneer CEO John Caplan believes the company is "at the beginning" of its growth trajectory. They have increased the growth rate for ideal customer profiles (ICPs) for four straight quarters to 11% YoY and ARPU for five straight quarters to 20%.

Astera Labs: Riding the AI Boom in Data Centers and Cloud Connectivity

Astera Labs Inc. NASDAQ: ALAB designs and produces semiconductor chips that improve the latency and efficiency of data transfer in electronic devices. They offer connectivity solutions for cloud and AI infrastructure, including servers, computers, data centers and cloud systems. The demand growth of high bandwidth memory (HBM) for AI workloads is a growth driver for Astera as its chips make faster data transmission possible.

Astera reported Q3 2024 EPS of 23 cents, beating consensus estimates by 6 cents. Revenues surged 206% YoY to $113.1 million, crushing the $97.5 million consensus estimate.

Astera Labs CEO Jitendra Mohan stated, "Our business has now entered a new growth phase with multiple product families ramping across AI platforms based upon both third-party GPUs and internally developed AI accelerators. With an expanding product portfolio, including the new Scorpio Fabric Switches, we are cementing our position as a critical part of AI connectivity infrastructure, delivering increased value to our hyperscaler customers, and unlocking additional multi-year growth trajectories for Astera."

The company issued upside EPS guidance for the fourth quarter of 2024 of 25 cents to 26 cents versus 18 cents, with revenues of $126 million to $130 million firmly above consensus estimates for $107.94 million.