Organigram Holdings Inc. is expected to report fiscal third-quarter earnings Monday before the opening bell. The company says it will host a conference call at 8 a.m. Eastern time.
What to expect
Earnings: On average, analysts polled by FactSet expect Organigram Holdings Inc. to report earnings of C$0.03 a share, up from 2 cents a share in the year-ago period.
Revenue: For the company’s second full quarter of adult recreational sales in Canada, analysts model revenue of C$30.3 million ($23.2 million), up from C$3.7 million in the year-ago period. In the March quarter, the company sold 4,987 kilograms of pot, up from 2,135 kilograms in the first quarter of recreational cannabis sales.
Stock movement: Organigram OGI, -7.17%[1] OGI, -7.88%[2] stock has fallen 2.8% in the past three months, as the S&P 500 index gained 2.8%. Horizons Marijuana Life Sciences Index ETF has fallen 16.5% in the past three months. The company’s stock began trading on the Nasdaq on May 21[3]. Previously it was traded in Canada and over the counter in the U.S.
Of the 12 sell-side analysts that cover Organigram, 11 have the equivalent of a buy rating on the name. One rates the stock a hold. The average target price is $12.35, which represents an upside of 34% from Monday’s closing price.
What to look for in the call
Last week, outgoing Canopy Growth Corp. CGC, -7.76%[4] WEED, -7.99%[5] Chief Executive Bruce Linton praised Organigram as one of the stocks and companies investors should examine closely. While Organigram sold more recreational cannabis in Canada than every other company in the country in the prior quarter as from Canopy Growth — including larger-by-market-value rivals such as Aurora Cannabis Inc. ACB, -5.71%[6] ACB, -5.98%[7] and Tilray Inc. TLRY, -4.09%[8] — it remains to be seen if the company will continue to rise above its rivals.
For more: One Canopy Growth co-CEO is out, and the other isn’t far behind in major shake-up[9]
Jefferies analyst Ryan Tomkins wrote in a note...