Back to top

Image: Bigstock

What's in the Cards for OrganiGram (OGI) in Q4 Earnings?

Read MoreHide Full Article

OrganiGram Holdings Inc. OGI is slated to release fourth-quarter fiscal 2019 results on Nov 25, before the market opens.

In the last reported quarter, this Zacks Rank #3 (Hold) company posted a breakeven while the Zacks Consensus Estimate for earnings was 2 cents per share.

Let's discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors at Play

Currently, OrganiGram is one of the three companies with distribution agreements across all 10 provinces in Canada. In the last reported quarter, the company’s operating and financial results were highly impressive alongside a few Canadian licensed producers. It registered strong sales, particularly in Alberta and each of the Atlantic provinces among others. Banking on the company’s effective execution of strategic priorities (the goal of increasing yields and cannabinoid content and evaluating the different strains from generic bank to offer new products), we expect the same to reflect on the company’s to-be-reported results.

Organigram Holdings Inc. Price and EPS Surprise

Organigram Holdings Inc. Price and EPS Surprise

Organigram Holdings Inc. price-eps-surprise | Organigram Holdings Inc. Quote

In this regard, we note that over the last few months, Canadian cannabis market has been expanding significantly with increasing number of retail store launches, particularly in the two most populous provinces of Ontario and Quebec. And per OrganiGram, there is significant unmet consumer demand for CBD products. To fill in this gap, the company started working on strategic arrangements with both 1812 Hemp and Valens GroWorks a few months back. This effort too is expected to have boosted the company’s fiscal fourth quarter.

Q4 Estimates

The Zacks Consensus Estimate for total revenues stands at $12.17 million. The consensus mark for earnings per share is pegged at a break-even level.

Cannabis Stocks With Better-Than-Expected Earnings

Here are a few cannabis stocks with estimate beats in the last reported quarter.

GW Pharmaceuticals GWPH reported 48 cents of loss per share in the third quarter of 2019, narrower than the Zacks Consensus Estimate of a loss of 87 cents. The stock carries a Zacks Rank #3.

Cronos Group Inc CRON reported loss of 2 cents per share in the third quarter, narrower than the Zacks Consensus Estimate of a loss of 3 cents. The stock has a Zacks Rank of 3.

Tilray, Inc's (TLRY - Free Report) revenues of $51 million in the third quarter 2019, ahead of the Zacks Consensus estimate of $51 million. The stock is Zacks #3 Ranked. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Tilray, Inc. (TLRY) - free report >>