This earnings season, quite a few healthcare companies notched solid beats on revenue, earnings, or both. Unfortunately for its shareholders, Organogenesis Holdings (ORGO 2.85%) was not one of them.
The wound care specialist published its fourth-quarter and full-year 2023 results after market hours on Thursday. This was greeted the following day with a sell-off that saw the stock's price dive in excess of 18%. By contrast, the S&P 500 index landed in the black with a 0.8% increase.
Double miss and double decline
For the quarter, Organogenesis earned net revenue of $99.7 million, which was down 14% year over year. Of this, advanced wound care -- by far the larger of its two business segments -- was responsible for more than $93 million. (The other segment, surgical and sports medicine, suffered only a 3% drop to $6.5 million.)
On the bottom line, the specialty healthcare company landed slightly in the red at $568,000 ($0.00 per share) against the year-ago profit of almost $7.5 million.
Compounding that revenue fell and Organogenesis flipped to a net loss, it also missed analyst estimates for both line items. Pundits following the stock were modeling a per-share net income figure of $0.01 and a much higher top line at slightly over $109 million.
Revenue recovery anticipated
Organogenesis is expecting a return to top-line growth for the entirety of 2024. It proffered guidance of $445 million to $470 million for revenue for annual growth of at least 3%. The bottom-line range provided was a loss of $10.6 million to a profit of $4.6 million, according to generally accepted accounting principles (GAAP) standards.
