Organigram Stock in Focus Ahead of Q1 Results This Month

OrganiGram stock

It goes without saying that 2019 was a pretty disappointing year for the cannabis sector, and most of the companies in the industry found it difficult to stop their stock prices from plummeting. In that regard, Organigram stock has also had its fair share of difficulties, but investors will be closely monitoring its performance in the first fiscal quarter of 2020 from Organigram Holdings (TSX:OGI) (NASDAQ:OGI). The quarterly report is going to be released on January 14 and is going to cover the quarter that ended on November 30 last year.

Key Metrics to Watch

In the last reported quarter, the company reported $16.3 million in revenue, which reflected a disappointing drop of as much as 34% from the previous quarter.

However, the company has stated that it expects better performances in the upcoming quarter, primarily due to higher sales and lower expenses. While analysts have projected net sales for the quarter to hit $16.1 million, it should be noted that there are some projections that are far more negative.

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One analyst has pegged that figure at $12.66 million, while an optimistic analyst has projected net sales of as much as $21.11. Investors would definitely want to see some growth from the company in this quarter, and if Organigram Holdings can deliver on that, then the stock could move upward.

Organigram stock had a very tough time in 2019. From its highest level in May last year, Organigram stock tumbled by as much as 70%. The company’s decision to get into the cannabis derivative products business has proven to be costly and has resulted in a rise in its losses.

Organigram Holdings has had to expand one of its facilities in order to develop derivatives, and that has proven to be another red flag from Wall Street for the company. However, the upcoming financial report will give a much clearer idea as to where the company stands.

Organigram stock is down 2.15% at $2.74 CAD in the late morning session on Tuesday.

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