NASHVILLE - Harrow, the Nashville-based eyecare-pharmaceutical company, saw its shares tumble more than 25% in premarket trading Today, following an announcement of lower-than-expected third-quarter results and a downward revision of its full-year guidance.
On Monday, Harrow reported an adjusted loss of 9 cents per share, which was notably off the mark from FactSet analysts' expectations of a 4 cent profit per share. Additionally, the company's revenue for the quarter came in at $34.5 million, falling short of the anticipated $37.6 million.
In response to these figures and reflecting a cautious outlook for the remainder of the year, Harrow revised its full-year revenue forecast downward, from the previous range of $135 - $143 million to a new projection of $129 - $136 million. Similarly, the estimate for full-year EBITDA (earnings before interest, taxes, depreciation, and amortization) was adjusted from an initial range of $44 - $50 million down to $36 - $41 million.
The market's reaction was swift as Harrow's share price plummeted from Monday's closing price of $12.83 to approximately $9.58 during Today's premarket session. Investors are recalibrating their expectations in light of these developments and the company's updated financial projections.
InvestingPro Insights
According to real-time data from InvestingPro, Harrow's P/E ratio as of Q3 2023 stands at 15.3. This is an important figure for investors to consider, as a P/E ratio higher than its industry average might suggest overvaluation, according to one of the InvestingPro Tips.
Furthermore, Harrow's EPS growth rate over the last twelve months as of Q3 2023 is -2.7%. This negative rate could be a warning sign for investors, as per the second InvestingPro Tip.
Lastly, Harrow's Return on Equity (ROE) as of Q3 2023 is 8.3%, which provides insight into the company's efficiency at generating profits from shareholders' equity.
For more insights like these, consider the InvestingPro product, which includes numerous additional tips to guide your investment decisions.
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