22nd Century Group (NASDAQ:XXII) Releases Quarterly Earnings Results, Misses Estimates By $9.60 EPS

22nd Century Group (NASDAQ:XXII) announced its quarterly earnings data on Thursday. The biotechnology company reported ($15.60) earnings per share for the quarter, missing analysts’ consensus estimates of ($6.00) by ($9.60), Zacks reports. 22nd Century Group had a negative net margin of 27.04% and a negative return on equity of 69.55%. The business had revenue of $2.87 million for the quarter, compared to the consensus estimate of $7.48 million.

Here are the key takeaways from 22nd Century Group’s conference call:

• Retail distribution is expanding: The company plans to grow its VLN and Pinnacle VLN presence from approximately 2,000 stores in 20 states to 5,000 outlets across 35 states by year-end 2026, including new distribution in Metro New York, Northern New Jersey, and California.
• Management reported progress toward improving product mix and margins, with second-quarter gross loss narrowing to $0.3 million from $0.6 million in the first quarter and year-earlier period, driven by greater emphasis on higher-margin Pinnacle and VLN products.
• Revenue declined during the transition: Second-quarter net revenue fell 29% sequentially to $2.9 million, while the company continues to exit low-margin contract manufacturing volume that is expected to be substantially wound down over the next two to three quarters.
• The company remains unprofitable, reporting a $3.3 million operating loss and negative adjusted EBITDA of $3.5 million in the second quarter; it ended the period with $6.1 million in cash and no debt, making successful retail sell-through and repeat orders important to its liquidity outlook.

22nd Century Group Stock Up 5.1%

Shares of NASDAQ XXII traded up $0.21 during mid-day trading on Friday, reaching $4.32. The company had a trading volume of 9,483 shares, compared to its average volume of 10,579. The company has a debt-to-equity ratio of 0.02, a quick ratio of 2.12 and a current ratio of 2.67. 22nd Century Group has a twelve month low of $3.61 and a twelve month high of $735.00. The stock’s 50 day moving average is $4.74 and its 200-day moving average is $43.10. The stock has a market capitalization of $2.25 million, a PE ratio of -0.00 and a beta of 0.65.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on XXII shares. Wall Street Zen upgraded 22nd Century Group to a “sell” rating in a report on Saturday, June 27th. Weiss Ratings upgraded shares of 22nd Century Group from a “sell (e)” rating to a “sell (e+)” rating in a research report on Tuesday, July 28th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the stock currently has an average rating of “Sell”.

Institutional Investors Weigh In On 22nd Century Group

An institutional investor recently raised its stake in 22nd Century Group stock. Anson Funds Management LP lifted its stake in shares of 22nd Century Group, Inc (NASDAQ:XXII) by 677.1% in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 763,212 shares of the biotechnology company’s stock after acquiring an additional 665,000 shares during the quarter. Anson Funds Management LP owned about 149.65% of 22nd Century Group worth $588,000 as of its most recent filing with the SEC. Institutional investors own 18.06% of the company’s stock.

22nd Century Group Company Profile

22nd Century Group, Inc, founded in 1998 and headquartered in New York, is a plant biotechnology company that applies proprietary breeding and gene modulation technologies to tobacco, hemp and related plant species. The company’s core mission is to develop and commercialize plant-based solutions that address public health, consumer wellness and agronomic needs. Its flagship reduced nicotine tobacco platform is engineered to deliver significantly lower levels of nicotine than conventional tobacco products while retaining the sensory characteristics sought by adult smokers.

Through its branded reduced nicotine tobacco products, marketed under the NEXT Generation™ portfolio, and its GenCanna® subsidiary focused on hemp cultivation and cannabinoid extraction, 22nd Century serves both commercial markets and contract research clients.