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

Organigram Global (NASDAQ:OGI) posted its quarterly earnings data on Tuesday. The company reported ($0.02) EPS for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.01), Zacks reports. Organigram Global had a negative net margin of 9.99% and a negative return on equity of 16.91%.

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 Stock Down 4.7%

Shares of OGI traded down $0.08 during mid-day trading on Tuesday, reaching $1.52. The company’s stock had a trading volume of 481,128 shares, compared to its average volume of 798,500. The business has a fifty day moving average of $1.69 and a 200 day moving average of $1.67. The company has a market cap of $204.72 million, a price-to-earnings ratio of -13.77 and a beta of 1.60. Organigram Global has a 1 year low of $0.85 and a 1 year high of $2.24.

Institutional Investors Weigh In On Organigram Global

Hedge funds have recently bought and sold shares of the business. Bank of America Corp DE boosted its position in Organigram Global by 1,678.1% during the 3rd quarter. Bank of America Corp DE now owns 37,357 shares of the company’s stock worth $76,000 after acquiring an additional 35,256 shares during the period. Two Sigma Investments LP acquired a new stake in shares of Organigram Global during the third quarter worth approximately $907,000. Finally, Tidal Investments LLC boosted its holdings in shares of Organigram Global by 4.9% during the second quarter. Tidal Investments LLC now owns 2,646,879 shares of the company’s stock worth $3,573,000 after purchasing an additional 124,356 shares during the period. 34.63% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

OGI has been the topic of several research reports. Wall Street Zen cut shares of Organigram Global from a “hold” rating to a “sell” rating in a research report on Saturday, January 31st. Canaccord Genuity Group initiated coverage on shares of Organigram Global in a research note on Tuesday, January 27th. They issued a “buy” rating on the stock. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Organigram Global in a report on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold”.

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.