Why Organogenesis Holding Stock Plummeted by 18% Today

This earnings season, quite a few healthcare companies notched solid beats on revenue, earnings, or both. Unfortunately for its shareholders, Organogenesis Holdings (ORGO -18.21%) 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.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Source link

About The Author

Scroll to Top