OGI Earnings Prediction
The chart below shows how OGI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OGI sees a -0.83% change in stock price 10 days leading up to the earnings, and a -6.31% change 10 days following the report. On the earnings day itself, the stock moves by +0.29%. This data can give you a slight idea of what to expect for the next quarter's release.
OGI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
41.06M
25.24%
9.12%
Gross Margin
67.84%
269.90%
12700.00%
Operating Margin
21.43%
119.10%
-133.08%
Net Margin
6.86%
101.05%
-109.53%
EPS
0.03
101.11%
-110.00%
No Data Available
OGI Earnings Analysis
OrganiGram Holdings Inc Corporation (OGI.O) Earnings Conference Call
Positive
Recreational Business Growth: OrganiGram's Canadian recreational business grew 25% year over year in Q3, contributing to overall net revenue growth of over 9% sequentially from Q2.
Gross Margin Improvement: Adjusted gross margins improved significantly to 36% in Q3, up from 19% in the same period last year, reflecting a 139% increase in gross margin dollars to $14.6 million.
Record Yield Achievement: The company achieved a record yield of 185 grams per plant in Q3, representing a 28% increase compared to the prior year, supported by strategic investments in cultivation processes.
German Cannabis Market Investment: OrganiGram's investment of approximately $21 million in Sanity Group marks a significant step in establishing a foothold in the German cannabis market, enhancing international revenue potential.
EBITDA and Net Income Recovery: The company reported adjusted EBITDA of $3.5 million in Q3, a turnaround from a negative $2.9 million in the same prior year period, alongside a net income of $2.8 million compared to a net loss of $213.5 million last year.
Negative
Operating Cash Flow Analysis: Net cash used in operating activities before working capital charges was $200,000 in Q3 fiscal 2024, compared to a use of $14,800,000 in the prior year period, indicating a significant cash burn despite improvements in revenue.
Investing Activities Cash Flow: Cash used in investing activities in Q3 was $14,900,000, driven primarily by the investment in Sanity Group, which is a substantial increase from $3,400,000 in Q3 fiscal 2023, reflecting a heavy reliance on external investments for growth.
Market Share Erosion: Despite a 25% year-over-year increase in net revenue, the overall market remains challenging with average market share erosion for the top 10 LPs of 0.4 points year over year, indicating increased competition and pressure on pricing.
Flat Average Selling Price: The average selling price for flower remained flat quarter over quarter, suggesting a lack of pricing power in a competitive market, which could hinder future revenue growth.
Operating Expenses Analysis: Operating expenses in Q3 decreased by 20%, but this was largely due to prior year impairments, indicating that underlying operational costs may still be high and could impact profitability moving forward.
OGI FAQs
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OGI Earning Call Sentiment
Earnings call transcript: OrganiGram Q3 2024 shows revenue boost
OGI.O
0.88%Positive
OrganiGram has shown strong financial performance, with significant revenue growth and improved margins. The strategic investments and international expansion, particularly in Europe, are promising. The Q&A highlighted some risks, such as EU GMP certification delays and supply chain challenges, but management's optimism and the successful BAT investment provide a positive outlook. Given the strong financial metrics and potential market expansion, a positive stock price movement is expected over the next two weeks.
