Organigram Global (NASDAQ:OGI) Posts Earnings Results, Misses Estimates By $0.01 EPS

Organigram Global (NASDAQ:OGI) announced its earnings results on Tuesday. The company reported ($0.02) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.01), Zacks reports. Organigram Global had a net margin of 6.03% and a negative return on equity of 15.38%. The business had revenue of $46.27 million for the quarter, compared to the consensus estimate of $73.38 million.

Here are the key takeaways from Organigram Global’s conference call:

• Strong quarter and guidance intact: Net revenue rose 49% YoY to CAD 65.3M, adjusted EBITDA increased 273% to CAD 5.3M, adjusted gross margin held at 38%, and management reaffirmed full-year guidance of >CAD 300M revenue and positive free cash flow; total cash & short-term investments were CAD 63M (CAD 7.6M unrestricted).
• Operational and plant-science gains: Harvests grew 43% to >28,000 kg with average flower THC >29% (38% of lots >30%), LED conversions and nutrient improvements raised yields, and a proprietary powdery-mildew genetic marker cuts screening time from ~90 to 10 days, expected to improve yields and margins over time.
• International execution setback: Q1 international sales were CAD 5M (+55% YoY) but sequential volumes fell because a higher-than-expected proportion of flower was out-of-spec, which management estimates trimmed ~CAD 3.5M of international revenue; affected product was repurposed to Canada and EU GMP certification remains pending after regulator follow-up.
• Canada market position and competitive dynamics: Organigram remains #1 nationally (11.3% Q1; 11.7% L12M) but saw ~500 bps quarter-on-quarter share decline driven by an eight-week BC strike and intensified vape/IPR competition; BC distribution has been restored and new product launches (SHRED Soda and SHRED Shots with a 15?minute onset claim) roll out in Q2.

Organigram Global Trading Down 0.4%

Shares of NASDAQ:OGI traded down $0.01 during trading on Thursday, reaching $1.31. The company’s stock had a trading volume of 276,934 shares, compared to its average volume of 867,794. The stock has a market capitalization of $176.35 million, a PE ratio of 9.32 and a beta of 1.60. Organigram Global has a 12 month low of $0.85 and a 12 month high of $2.24. The firm’s 50 day simple moving average is $1.68 and its two-hundred day simple moving average is $1.66.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Organigram Global in a research note on Monday, December 29th. Canaccord Genuity Group began coverage on shares of Organigram Global in a report on Tuesday, January 27th. They issued a “buy” rating for the company. Wall Street Zen lowered Organigram Global from a “hold” rating to a “sell” rating in a research note on Saturday, January 31st. Finally, Atb Cormark Cm cut Organigram Global from a “strong-buy” rating to a “moderate buy” rating in a report on Wednesday. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold”.

Institutional Investors Weigh In On Organigram Global

Hedge funds and other institutional investors have recently modified their holdings of the business. Tidal Investments LLC grew its stake in Organigram Global by 4.9% in the 2nd quarter. Tidal Investments LLC now owns 2,646,879 shares of the company’s stock worth $3,573,000 after acquiring an additional 124,356 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in Organigram Global by 82.1% in the fourth quarter. Goldman Sachs Group Inc. now owns 466,585 shares of the company’s stock worth $784,000 after purchasing an additional 210,391 shares during the last quarter. Two Sigma Investments LP purchased a new stake in Organigram Global in the third quarter valued at about $907,000. Finally, Bank of America Corp DE raised its position in shares of Organigram Global by 1,678.1% in the 3rd quarter. Bank of America Corp DE now owns 37,357 shares of the company’s stock valued at $76,000 after purchasing an additional 35,256 shares during the last quarter. 34.63% of the stock is currently owned by hedge funds and other institutional investors.

About Organigram Global

Organigram Global Inc (NASDAQ: OGI) is a licensed producer of cannabis and hemp products headquartered in Moncton, New Brunswick, Canada. Founded in 2013, the company operates a state-of-the-art cultivation and manufacturing facility spanning more than one million square feet. Organigram holds licenses from Health Canada to produce and sell both medical and adult-use cannabis, and it pursues Good Manufacturing Practice (GMP) certification to support international exports.

The company’s product portfolio encompasses dried flower, pre-rolled joints, cannabis oils, capsules and soft gels, as well as vapourizer cartridges and extracts.