Why Progyny Stock Crashed Today
Shares of leading fertility benefits manager Progyny (NASDAQ: PGNY) were down 19% as of 4 p.m. ET on Wednesday, according to data provided by S&P Global Market Intelligence.
The upstart healthcare company reported its results for the third quarter yesterday, missing analysts' expectations on the top line, delivering only 2% growth during the third quarter. Making matters worse, Progyny didn't assuage the market's fears by guiding for Q4 sales growth of only 1.5% at the midpoint, prompting many Wall Street experts to lower their price targets on the stock.
During the third quarter, Progyny grew its member count by a promising 19% to 6.4 million lives covered. However, due to sequentially lower utilization rates between Q2 and Q3 -- which CEO Peter Anevski says the company has never seen before -- the company's revenue growth was nowhere near expectations.
Source Fool.com
