Why Progyny Stock Plunged, Then Gradually Recovered Today

Shares of fertility benefits management company Progyny (NASDAQ: PGNY) are down 6% on Friday as of 11 a.m. ET, after the company reported second-quarter earnings. Sales rose 5% (11% minus a large client's departure last year), and adjusted earnings per share jumped 15%, outpacing Wall Street's expectations. However, management guidance for Q3 sales to rise only 7% to 11%, along with a slight sequential earnings dip, prompted today's negative market reaction.I don't think this is bad guidance; it's probably just a bit conservative for a company heading into its busy season. Ultimately, it was a solid Q2 for Progyny as gross profit margins expanded 180 basis points, which is a big deal as the company morphs from a pure-growth stock to more of a profitable compounder (hopefully). Meanwhile, the average number of covered members rose by 7% to 7.2 million, and utilization rates continued to inch higher, suggesting that the company's suite of fertility and women's health solutions remains popular.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool