Why Organigram Holdings Stock Is Plummeting Today
Organigram (TSX: OGI) stock is seeing big sell-offs in Wednesday's trading. The Canada-based cannabis company's share price was down 13% as of 1:45 p.m. ET, according to data from S&P Global Market Intelligence.
Organigram published results for the second fiscal quarter after the market closed yesterday, and sales in the period fell significantly short of the market's expectations. While revenue in the period increased roughly 24% year over year to reach 39.5 million Canadian dollars, the average analyst estimate had called for sales of CA$43.6 million, and the shortfall has contributed to a big pullback for the stock. Meanwhile, the business posted a loss of CA$7.5 million when the average analyst estimate had targeted a loss of CA$5.8 million.
While the company did miss sales estimates in Q2, it wasn't all bad news. The business managed to increase its non-GAAP (adjusted) gross margin to 34% -- up from 26% in the prior-year quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also increased to CA$5.6 million from CA$1.6 million in last year's quarter.
Source Fool.com
