By Shares of eyecare-pharmaceutical company Harrow took a sharp nosedive in premarket trading on Tuesday, falling more than 25%. This comes in the wake of the company reporting their third-quarter results, which were met with disappointment from investors. In addition to this, Harrow also revised their full-year guidance, further contributing to the decline in share value.
Underwhelming Q3 Performance
After the closing bell on Monday, Harrow revealed an adjusted loss of 9 cents per share, with revenue totaling $34.5 million for the quarter. Unfortunately, this didn’t meet the expectations of analysts who were predicting a profit of 4 cents per share on sales amounting to $37.6 million, according to FactSet’s poll.
Revised Full-Year Outlook
Harrow admitted to falling a few months behind its internal business targets. As a result, the company has adjusted its full-year revenue forecast to a range of $129 million to $136 million, down from the prior guidance of $135 million to $143 million. Similarly, they have also revised their adjusted EBITDA guidance to a range of $36 million to $41 million, versus the previous forecast of $44 million to $50 million.
Market Reaction
Investor sentiment immediately took a negative turn following the disappointing results and revised guidance. In premarket trading, Harrow shares tumbled over 25% from their previous closing price of $12.83 to $9.58.
It remains to be seen how Harrow will navigate these challenges and regain investor confidence as they move forward.
Comments