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Harrow Health (HROW) to Report Q1 Earnings: What's in the Offing?

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Harrow Health, Inc. (HROW - Free Report) is scheduled to release first-quarter 2023 results on May 11, after the closing bell.

In the last reported quarter, the company reported earnings of 7 cents per share against the Zacks Consensus Estimate of a loss of 15 cents. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on two occasions and lagged the same in the one, delivering a negative earnings surprise of 26.1%, on average. Information regarding one of the quarters is unavailable.

Let’s see how things have shaped up prior to this announcement.

Factors at Play

On the fourth-quarter 2022 earnings call in March, Harrow Health confirmed that it completed its Fab Five transaction in January and is currently working to transfer all the new drug applications connected to those products at the earliest. This will likely allow the company to begin the process of reviving marketing and sales detailing for ILEVRO, NEVANAC, VIGAMOX, MAXIDEX and TRIESENCE, products. This looks promising for the stock as, in the aggregate, they provided north of $200 million in revenues for their former owner in recent years.

Harrow Health, Inc. Price and EPS Surprise

Harrow Health, Inc. Price and EPS Surprise

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

In February, Harrow Health received a permanent J-Code for IHEEZO. The company also received a temporary pass-through reimbursement status for it, making IHEEZO the only topical ocular anesthetic in the United States eligible for reimbursement. This raises our optimism about Harrow Health, which is currently preparing for the launch of IHEEZO this month.

In February, Harrow Health announced the launch of its patent-pending, next-generation compounded Atropine formulations. These are currently available through the company’s wholly-owned compounding and mail-order pharmacy subsidiary, ImprimisRx. In January, the company announced the availability, for in-office use, of Fortisite from its FDA-registered and FDA-inspected ImprimisRx 503B outsourcing facility. These factors are likely to have significantly pushed up the company’s first-quarter 2023 revenues.

The Estimate Picture

For first-quarter 2023, the Zacks Consensus Estimate of $25.9 million for total revenues calls for an uptick of 17% from the prior-year reported figure.

The consensus estimate for loss per share is pegged at 6 cents.

What Our Model Suggests

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP has higher chances of beating estimates. This is not the case here, 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 are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks Worth a Look

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

Ikena Oncology, Inc. (IKNA - Free Report) has an Earnings ESP of +10.38% and a Zacks Rank of 2. IKNA has an estimated growth rate of 13.2% for 2023. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ikena Oncology’s projected sales growth of 63.5% compares favorably with the industry’s 2.3%.

Invivyd, Inc. (IVVD - Free Report) has an Earnings ESP of +13.86% and is a Zacks #2 Rank stock. IVVD has an estimated growth rate of 39.9% for 2023.

Invivyd’s P/B ratio of 0.4 compares favorably with the industry’s 1.8.

Surrozen, Inc. (SRZN - Free Report) has an Earnings ESP of +13.86% and carries a Zacks Rank of 2 at present. SRZN has an estimated long-term growth rate of 38.4%.

Surrozen’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 43.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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