Why Did Organigram Plunge After Reporting Better-than-Expected Quarterly Earnings???

Last week, Organigram Holdings Inc. (Nasdaq: OGI) (TSX: OGI) released third quarter financial results and reported stronger-than-expected revenues and guided higher for the current quarter.

We are favorable on these key data points from the Canadian Licensed Producer’s (LP) earnings report and will monitor how the trend continues in future quarters. Below, we listed what we consider to be 5 of the most important takeaways from the earnings report and believe our readers should be aware of these data points

1. Reported $55.2 million of gross revenue which is 90% higher on a year-over-year basis and 26% higher than the prior quarter
2. During the quarter, Organigram became the third largest Canadian LP and its market share of Canada’s recreational cannabis market was 7.8%. Last month, HyFire reported that its market share increased to 8.5% and we find this to be significant
3. Organigram has been capitalizing on burgeoning international markets and it shipped approx. $1.3 million of cannabis flower to Australia in the third quarter. Since then, the Canadian LP has shipped approx. $5.4 million to Australia and Israel
4. The management team has expanded the product offering and introduced 16 new SKUs during the quarter. Following the increase, Organigram has 85 SKUs available for sale
5. We are bullish on the cannabis concentrate market and Organigram is now distributing hash to all 10 provinces in Canada

During the last year, Organigram has been under considerable pressure and has traded lower with the rest of the Canadian cannabis sector. We are bullish on the growth that was reported in the third quarter and will monitor how the management team continues to capitalize on emerging verticals of the cannabis industry.

If you are interested in learning more about Organigram’s third quarter earnings report, please send an email to support@technical420.com with the subject “Organigram Beats and Guides Higher” to be added to our distribution list.

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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