Organigram Holdings (TSX: OGI) (NASDAQ: OGI) is currently up over 30% in after hours trading following an earnings beat on better than anticipated revenues for the first fiscal quarter of 2020. The company posted net revenues of $25.1 million for the quarter, up 54.9% from the fourth quarter of 2019, where the firm saw net revenues of $16.2 million.
Analysis estimates had anticipated far lower net revenues, with consensus estimates coming in at approximately $21 million for the first quarter of 2020. The earnings beat has evidently resulted in a short squeeze, with the equity now trading at $2.91 in the after hours session, up from the days close of $2.16 on the Nasdaq.
Despite the earnings beat, Organigram posted a net loss of $0.8 million, thanks in part to selling, general and administrative expenses of $9.4 million. Cash decreased 29% during the quarter, to that of $34.1 million while long term debt increased 70%, from $46.0 million to $78.4 million.
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Nevertheless, top line revenue numbers appear to have satisfied investors, with the result being explosive for current holders of the equity in the after hours session.
Organigram Holdings last traded at $2.91 on the Nasdaq.
Information for this briefing was found via Sedar and Organigram Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
