Cannabis firm Organigram's Q3 revenue beats estimates

Overview

• Organigram fiscal Q3 net rev rises 72% yr/yr, beating analyst expectations

• Adjusted EBITDA for fiscal Q3 grows 64% yr/yr, driven by higher revenue

• Company expands U.S. presence, generating revenue and increasing exports

Outlook

• Organigram expects adjusted gross margin to improve with Motif synergies

• Company anticipates sustained profitability and free cash flow in near-term

• Company aims to expand product portfolio and international presence

Result Drivers

• MOTIF ACQUISITION - Co attributes revenue growth to contributions from Motif Labs acquisition

• INTERNATIONAL SALES - Significant increase in international revenue, up 208% yr/yr

• U.S. EXPANSION - Began generating U.S. revenue and expanded distribution into new states

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Organigram Global Inc is C$2.75, about 19.3% above its August 12 closing price of C$2.22

Press Release: ID:nBw4RhhwTa