OrganiGram Holdings (NASDAQ:OGI) stockholders caught the worst kind of financial buzz on Tuesday, when their shares lost 9.2% in value.
The reason why is clear -- earnings. The marijuana company released its third quarter of fiscal 2020 results, and they hardly made anyone giddy and euphoric.
OrganiGram's Q3 net revenue was 18.0 million Canadian dollars ($13.3 million), down sharply from both the CA$24.8 million ($18.3 million) of Q3 2019, and the CA$23.2 million ($17.1 million) of the preceding quarter. The company's net loss was just under CA$90 million ($66.4 million), or CA$0.51 ($0.38) per share. This was more than nine times worse than the year-ago result, and far steeper than Q2's CA$6.8 million ($5.0 million) shortfall.
Even these diminished figures failed to meet analyst expectations. On average, prognosticators were estimating CA$22.4 million ($16.5 million) on the top line, and a per-share net loss of only CA$0.04 ($0.03).
OrganiGram attributed its poor showing to recent job cuts, saying these "contributed to a number of product launch delays, including our initial large format value offering, which affected opportunities to potentially capture significant market share and sales in dried flower, the largest product segment of the recreational market."
OrganiGram is optimistic about recent new product introductions and extensions to existing lines. Those far-worse-than-expected results are deeply concerning, however, and investor patience has already been stretched thin by the struggling company.