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What's in Store for Harrow Health (HROW) in Q2 Earnings?

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Harrow Health, Inc. (HROW - Free Report) is set to report second-quarter 2021 results on Aug 10, after market close.

For the first quarter, the company reported earnings of 1 cent agaiinst the Zacks Consensus Estimate of a loss of 5 cents. Over the trailing four quarters, its earnings outperformed the consensus estimate on three occasions and missed on one, the average beat being 59.56%.

Let’s take a look at how things have shaped up prior to this announcement.

Factors at Play

Since the beginning of 2021, Harrow Health has been gaining from the pent-up demand for ophthalmic procedures that have been delayed due to COVID-19 in 2020. The company in its May 2021 update expected this to continue through the rest of 2021. This should get reflected in Harrow Health’s Q2 results.

Harrow Health, Inc. Price and EPS Surprise

Harrow Health, Inc. Price and EPS Surprise

Harrow Health, Inc. price-eps-surprise | Harrow Health, Inc. Quote

Added to this, Harrow Health is also optimistic about its latest developments, all of which are expected to have contributed to the company’s yet-to-be-reported quarter’s top-line growth. The company is currently executing well in terms of its strategy to expand beyond pharmaceutical compounding, by leveraging its market position and adding high value in terms of revenue per unit and gross margins, FDA approved drugs and late-stage drug candidates to its platform.

In this regard, Harrow Health EyePoint Pharmaceuticals’partnership to market Dexycu continues to be beneficial to the company’s business and confimsthe validity of the company’s expansion strategy.

In addition, Harrow Health is executing on its vision of serving eyecare customers directly through Visionology, launched in May. Visionology is the company’s direct-to-consumer eyecare platform that delivers a simple and seamless user experience to help patients manage their chronic eye diseases. In June, Visionology acquired a worldwide exclusive license from Spaeth/Richman Contrast Sensitivity Center (SPARCS) to make its SPARCS technology available on Visionology’s direct-to-consumer eyecare platform, Visionology.com.

All these developments are likely to have strongly contributed to the company’s Q2 revenues.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter 2021 revenues is pegged at $15.63 million, suggesting a 93.92% surge over the year-ago reported figure.

The Zacks Consensus Estimate for the bottom line is pegged at a loss per share of 8 cents, indicating a deterioration from the year-ago loss of 1 cent.

What Our Model Suggests

Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. This is however not the case as you can see below.

Earnings ESP: Harrow Health has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2.

Stocks Worth a Look

Here are a few medical stocks worth considering, as these too have the right combination of elements to beat on earnings this reporting cycle.

Adverum Biotechnologies, Inc. (ADVM - Free Report) has an Earnings ESP of +19.46% and a Zacks Rank #2, currently. The stock is slated to release second-quarter 2021 results on Aug 9.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Calliditas Therapeutics AB (CALT - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank of 2, at present. The stock is slated to release second-quarter 2021 results on Aug 12.

Schrodinger, Inc. (SDGR - Free Report) has an Earnings ESP of +76.14% and is a Zacks #2 Ranked stock. The company is slated to release its second-quarter 2021 results on Aug 12.