Founded in 2013, Organigram first began as a medical cannabis provider. Now, it is one of the finest micro-cap Cannabis producers. It might not be the largest producer in Canada but it’s surely one to keep a look at, now that its earnings are shooting up more than expected following the quarter 4 earnings report, 2020.
Other similar companies have taken a toll owing to the coronavirus pandemic situation but OGI’s market didn’t dwindle throughout the time. The recent rush to dominate markets in Canada has led to the already oversupplied market being equalized. There is a diminished headwind in Canadian markets currently. However, OGI stocks are well-positioned to benefit from that.
OGI Stocks Head Higher Than Expected Following Q4 Report
OGI’s net and gross revenue rose by double-digits. This is because the company saw an increased sale. In the case of net revenue, OGI stocks made over 25.2%. The company reported earnings of $20.4 million that is more than the consensus agreement on the target price.
Organigram saw real growth in the value segment. Sales also improved because of the legalization of certain products that were not legal in the corresponding quarter the previous year.
In the case of figures where the company took a downturn is the GAAP loss. The company missed the $0.17 mark and reported $0.20. Moreover, the problems relating to the production levels of the company are expected to diminish in the upcoming quarter as Organigram has been working to cut down on its production levels since the first quarter of 2020. To elaborate on this, OGI has reduced workforce by 25% and has delayed unnecessary expansion projects temporarily.
OGI shares have increased by 3.5% in premarket trade following the earning report of Q4. It looks like the company is not going to stop soon as analysts expect bullish trends that will take OGI stocks higher at least till the next few months.