Organogenesis Racks Up Triple-Digit Gains In Five Months

Organogenesis Racks Up Triple-Digit Gains In Five Months

April 7, 2021

The stock, Organogenesis Holdings Inc. (ORGO), featured on our ‘Small Stocks – Big Potential’ section on October 15, 2020, at an opening price of $4.40. On March 23, 2021, the stock touched a new 52-week high of $21.75, representing a gain of 394.3% from our published price. ORGO closed yesterday’s trade at $18.17, down 29 cents or 1.57%.

As recently as on March 17, the commercial-stage regenerative medicine company reported Q4 net income of $18.5 million or $0.16 per share compared to a loss of $4.4 million or $0.04 per share last year. Net revenue was $106.8 million, up 43% compared to $74.6 million in the prior year period.

As of December 30, 2020, the company had $84.8 million in cash and restricted cash and $84.8 million in debt obligations.

Looking ahead, the company expects to grow its revenue 15% – 20% year-over-year and to generate positive GAAP net income and Adjusted EBITDA for the full year 2021 period.

Why we published this stock on October 15, 2020?

Organogenesis reported encouraging preliminary financial results for the third quarter ended September 30, 2020.

The company then projected Q3 net revenue between $99.0 million and $100.0 million, up 54% – 56% compared to net revenue of $64.3 million in the year-ago quarter and well above analysts’ consensus estimate of $71.96 million.

Organogenesis further expected to report positive GAAP net income and positive Adjusted EBITDA for the three months ended September 30, 2020.

For the twelve months ending December 31, 2020, the company expected net revenue in the range of $311 million – $314 million, representing growth of about 19% – 20% year-over-year, as compared to net revenue of $261 million for fiscal 2019. Wall Street analysts estimated revenue of $275.12 million for fiscal 2020.

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