Organigram Global (NASDAQ:OGI) Releases Quarterly Earnings Results

Organigram Global (NASDAQ:OGI) issued its quarterly earnings results on Tuesday. The company reported ($0.02) EPS for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.01), Zacks reports. The firm had revenue of $46.27 million for the quarter, compared to analysts’ expectations of $73.38 million. Organigram Global had a negative return on equity of 16.91% and a negative net margin of 9.99%.

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 12.6%

OGI stock opened at $1.39 on Wednesday. The stock has a 50-day moving average price of $1.68 and a two-hundred day moving average price of $1.66. Organigram Global has a 12-month low of $0.85 and a 12-month high of $2.24. The company has a market cap of $187.83 million, a PE ratio of -12.64 and a beta of 1.60.

Wall Street Analyst Weigh In

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

Hedge Funds Weigh In On Organigram Global

Hedge funds and other institutional investors have recently modified their holdings of the company. Bank of America Corp DE increased 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 purchasing an additional 35,256 shares in the last quarter. Goldman Sachs Group Inc. increased its position in shares of 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 acquiring an additional 210,391 shares in the last quarter. Two Sigma Investments LP purchased a new position in shares of Organigram Global in the 3rd quarter valued at $907,000. Finally, Tidal Investments LLC lifted its holdings in shares of Organigram Global by 4.9% during the 2nd quarter. Tidal Investments LLC now owns 2,646,879 shares of the company’s stock valued at $3,573,000 after acquiring an additional 124,356 shares in the last quarter. 34.63% of the stock is owned by institutional investors and hedge funds.

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.