Organigram Beats Revenue Estimates, Experiences Short Squeeze

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.

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.

Jay

As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive's stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.

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