How did LFMD's Q4 earnings surprise impact its stock?

LifeMD Inc.'s (LFMD) Q4 earnings surprise had a negative impact on its stock. The company reported a quarterly adjusted loss of $0.02 per share for the quarter ended December 31, 2024, which was higher than the same quarter last year when the company reported EPS of -$0.12. This represented an earnings surprise of -40%, indicating that the company's actual performance was significantly worse than what analysts had expected. The company's stock had already fallen by 5.7% this quarter, and with this earnings report, investors' concerns about the sustainability of LifeMD's subscription revenue, particularly in relation to GLP-1 compounding, were likely exacerbated. Mizuho's recent initiation of a Neutral rating on the stock with a price target of $7.00 also suggests a cautious outlook for the company's performance.