The cannabis sector has been going through a tough period for quite some time, and many of the prominent stocks have recorded sharp declines in recent days. However, there is one cannabis stock that has stood out from the crowd, and that is the Organigram Holdings’ (TSX:OGI) (NASDAQ:OGI) stock.
While the OrganiGram stock has also suffered declines, the company has enough going on to suggest that a recovery could be in the offing. Hence, it is important for investors to take a closer look at the stock. The numbers delivered by the company in the fiscal first quarter this year are encouraging.
OrganiGram generated revenues of C$25.2 million in the quarter, and that beat analysts’ revenue estimates of C$19.6 million comfortably. In the year-ago period, the company generated revenues of C$12.4 million, and hence, OrganiGram managed to grow its revenues by as much as 103.2% year on year.
On the other hand, OrganiGram has also managed to improve its gross margins significantly in a year. The gross margins turned from negative C$11.1 million to positive in the latest reported quarter. That is another development that should be cause for optimism among investors.
On the other hand, it should also be noted that the company delivered these numbers at a time when the cannabis market has been in the middle of a downturn. In addition to that, OrganiGram has also entered the cannabis derivatives market in a big way. The company has already sent its first shipment of Edison vape pens, and this particular segment could eventually turn out to be a major revenue generator for the company.
It has become clear that despite the struggles in the cannabis sector, OrganiGram has managed to keep its growth story going, and that is possibly one of the most important takeaways from the company’s latest financial performance. Investors could track this company over the course of the coming weeks. Sign-up for continuing coverage on shares of $OGI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $OGI, either long or short, and we have not been compensated for this article.