Organigram Holdings Inc. (NASDAQ: OGI) has confirmed that it will release its fiscal Q1 2022 earnings for the quarter ending November 30, 2021, on Tuesday, January 11, 2022, before market open.
What to look for
The company continues to expand its market share, which it believes is an important success indicator for cannabis producers considering sell-through to end clients is a significant long-term revenue predictor. After obtaining export and import permits, the company commenced shipping to Canndoc /Ltd. As a result, the company ranks #4 among Canadian LPs, and as of September 2021, its market share was 7.7% in Canada.
Earnings: Stockearning’s Estimated EPS for fiscal Q1 2022 is expected to be around $0.03 representing a YoY change of 62.5%. In the fourth quarter of 2021, the company had an EPS loss of $0.07, missing on estimates by 75%. Historical EPS Performance for the past 12 quarters shows that the company has beat estimates twice (16%) and missed six times (50%).
Revenue: The company anticipates revenue of $23.44 million for the quarter under review relative to revenue of $14.69 million. In the fiscal fourth quarter of 2021, the company had revenue of $24.9 million. For the full year, the company expects sales of $105.99 million, and for next year estimates predict revenue of between $112.42 million and $224.32 million.
Stock movement: Organigram shares have lost 1.6% % since the company released its last quarter earnings. Interestingly, OGI shares have been UP seven times in the last ten quarters. So, the historical price reaction suggests a 70% probability of the share price going UP once the company reports its fiscal Q1 2022 earnings. According to the Stockearning algorithm, the predicted first-day move is 8%, while the predicted move on the seventh day is 7%.
What analysts are saying
CIBC analyst John Zamparo slashed his price target on Organigram shares from C$4 to C$3.5 but maintained a Hold rating on the stock. Canaccord analyst Matt Bottomley lowered his price target on Organigram from C$3.5 to C$3. In his fiscal Q4 review note, the analyst noted although it was an encouraging year-end for the company in fiscal Q4 2021, macro challenges are still an issue. Organigram's sales were slightly below Canaccord's expectation of $23.84 million for the quarter, but it topped their adjusted gross margin projection by over $1.1 million. In addition, the company increased its market share during the quarter due to its SHRED value-priced edibles and flower.
After the company posted Q4 net sales that beat his and the Street's estimates as well as an inflection to positive gross margins, Alliance Global Partners analyst Aaron Grey lowered the firm's price target on Organigram from C$3.75 to C$3 and maintained a Hold rating on the shares. Although the analyst is encouraged by the gains, he'll be looking for the company to retain its share momentum and its continued gross margin improvement. Grey explained that his reduced price target is the result of moving his value forward to FY23 estimations and a low multiple attributable to the company's weaker gross margin profile than other licensed manufacturers.
Related News
Sanderson Farms (NASDAQ: SAFM) Q4 2021 Earnings Expectations, Revenue of $1.2 Billion and EPS of $3.8
Fuel Cell Energy (NASDAQ: FCEL) Earnings Expectations, Q4 2021 Revenue Of $20.34 Million