Why Is Eyecare-Focused Harrow Health Stock Trading Lower Today?

Harrow Health Inc HROW reported Q3 revenues of $34.3 million, an increase of 50% Y/Y, missing the consensus of $37.58 million.

Mark Baum, CEO, commented, During the third quarter, we produced record revenues, a 50% increase over prior‑year revenues. However, operationally, the third quarter was a mixed bag, with some areas performing exceptionally well, like our launch of IHEEZO, and some areas underperforming, such as our Fab Five products and our compounding business."

The company reported Q3 adjusted EPS loss of $(0.09), missing the consensus of $0.04 and higher than $(0.06) a year ago.

Harrow reported a core gross margin of 78% versus 72% a year ago.

In July, 

Harrow Health acquired the U.S. and Canadian commercial rights for Vevye (cyclosporine ophthalmic solution) 0.1%, a non‑preserved from Novaliq GmbH. Deal terms were not disclosed.

Harrow also agreed to acquire certain U.S. and Canadian commercial rights for some branded products from Santen Pharmaceutical Co Ltd.

Guidance: Harrow outlines expectations for 2024, which includes revenues of over $180 million, excluding contributions from TRIESENCE.

Harrow Cuts FY23 revenue guidance from $135 million-$143 million to $129 million-$136 million compared to the consensus of $141.53 million.

The company expects FY23 adjusted EBITDA of $36 million-$41 million.

Price Action: HROW shares are down 36.90% at $8.10 on the last check Tuesday.