Harmony Biosciences Holdings: Buy Rating Maintained Despite Q2 Earnings Miss

Harmony Biosciences Holdings has reported slightly lower-than-expected Q2 sales and EPS, but showed positive signs with an increase in Wakix therapy patients. The management reaffirmed full-year revenue guidance, and the pipeline remains on track with significant milestones expected. These developments support a Buy rating with a $49.00 price target. Mizuho Securities also maintains a Buy rating with a $48.00 price target.

Harmony Biosciences Holdings, Inc. (HRMY) recently reported its second-quarter 2025 financial results, showcasing a mixed performance with slightly lower-than-expected sales and earnings per share (EPS). The company reported an EPS of $0.92, beating the forecasted $0.72 by 27.78%, but its revenue of $200.5 million fell short of expectations at $204.59 million, representing a 16% year-over-year growth [2].

Despite the revenue miss, the company demonstrated strong profitability metrics, with a 25% return on equity and 21% return on invested capital. The stock experienced a pre-market decline of 3.88%, trading at $34.16, reflecting investor caution despite the EPS beat [2].

Management reaffirmed its full-year revenue guidance, projecting between $820 million and $860 million. The company anticipates several key catalysts, including the release of ZYN-two Phase III data for Fragile X syndrome and the initiation of Pitolacin HD Phase III trials. The company’s strategic focus remains on expanding its pipeline and achieving potential peak sales of $3-6 billion [2].

Harmony Biosciences continues to capitalize on its lead product, Wakix, which saw a 400-patient increase, indicating sustained demand in the narcolepsy market. The company's strong cash position, with $672 million in cash and equivalents, supports its growth trajectory and potential for further expansion [2].

Mizuho Securities maintains a Buy rating with a $48.00 price target, while Zacks Investment Research also maintains a Buy rating with a $49.00 price target, supporting the stock's potential for growth [1].

References:

[1] https://www.nasdaq.com/articles/harmony-biosciences-holdings-inc-hrmy-misses-q2-earnings-and-revenue-estimates
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-harmony-biosciences-q2-2025-beats-eps-expectations-93CH-4170933