SOWG Earnings Prediction
The chart below shows how SOWG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SOWG sees a +38.91% change in stock price 10 days leading up to the earnings, and a -4.16% change 10 days following the report. On the earnings day itself, the stock moves by -34.77%. This data can give you a slight idea of what to expect for the next quarter's release.
SOWG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.55M
-29.40%
-77.29%
Gross Margin
15.40%
-41.53%
-73.23%
Operating Margin
-91.63%
-1465.57%
-393.50%
Net Margin
-95.10%
-1534.39%
-546.27%
EPS
-0.33
-925.00%
-213.79%
No Data Available
SOWG Earnings Analysis
Sow Good Inc. Common Stock Corporation (SOWG.O) Earnings Conference Call
Positive
Revenue Surge in 2024: 1. Significant Revenue Growth: Sow Good achieved $30.6 million in revenue for the first nine months of 2024, a remarkable increase from $6.5 million during the same period last year, showcasing strong market demand for their innovative products.
Cash Position Improvement: 2. Improved Cash Position: The company ended Q3 2024 with cash and cash equivalents of $6.9 million, up from $2.4 million at the end of 2023, primarily due to a successful public offering that raised $12.8 million.
Production Capacity Expansion: 3. Expansion of Production Capacity: Sow Good now operates six freeze dryers at their Union Bower facility and has received a seventh at Rock Quarry, with additional units set to arrive in the next two months, enhancing their production capabilities.
New Product Introductions: 4. Strategic Product Launches: The company is set to introduce new products, including the Chamoy gummy and a proprietary rock candy, which are expected to enhance their market presence and cater to diverse consumer preferences.
Private Label Strategy Expansion: 5. Focus on Private Label Opportunities: Sow Good is re-engaging with private label customers to create new revenue streams, leveraging their manufacturing capabilities to expand market access and support long-term growth.
Negative
Revenue Decline Analysis: 1. Declining Revenue: Revenue in Q3 2024 was $3.6 million, down from $5 million in the prior year period, primarily due to delayed product shipments caused by extreme heat.
Gross Profit Decline: 2. Reduced Gross Profit: Gross profit for Q3 2024 was $0.6 million, a decrease from $1.3 million in Q3 2023, resulting in a gross margin drop from 27% to 16%.
Rising Operating Expenses: 3. Increased Operating Expenses: Operating expenses surged to $3.8 million in Q3 2024, compared to just $0.3 million in the same period last year, driven by higher compensation and administrative costs.
Net Loss Reported: 4. Significant Net Loss: The company reported a net loss of $3.4 million, or $0.33 per diluted share, contrasting with a net income of $0.3 million, or $0.04 per diluted share, in Q3 2023.
Declining Adjusted EBITDA: 5. Negative Adjusted EBITDA: Adjusted EBITDA for Q3 2024 was negative $1.9 million, worsening from a positive $0.6 million in the same quarter of the previous year.
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SOWG Earning Call Sentiment
Sow Good Inc. (SOWG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SOWG.O
-1.4%Positive
The earnings call reveals a challenging environment for Sow Good, with declining revenues, gross profit, and a significant net loss. Despite some proactive steps, such as optimizing operations and securing shelf space, issues like competitive pressures, supply chain challenges, and regulatory hurdles persist. The Q&A section highlights concerns over product quality and management's inability to provide clear guidance on key issues. While the cash position improved due to a public offering, the overall sentiment is negative, given the financial struggles and operational uncertainties.
