Cannabis producer Organigram Holdings Inc. shares surged 11% in midday trading Monday after the company reported fiscal first-quarter earnings. The Moncton, New Brunswick-based company reported fiscal first-quarter net income of C$29.5 million, or C$0.195 a share, compared with losses of C$1.4 million, or C$0.002 a share, in the year-ago period. Revenue adjusted for excise taxes and returns rose 419% to C$12.4 million from C$2.4 million in the year-ago period. FactSet did not poll enough analysts to form a reliable estimate of Organigram’s earnings. The company said in the earnings release that it expects to double sales in its fiscal second quarter as a result of recreational cannabis legalization in Canada. The company’s fiscal quarter ended Nov. 30 and included recreation sales for roughly six weeks. Organigram stock has gained 30% in the past year, with ETFMG Alternative Harvest ETF which tracks a basket of pot stocks, falling 12%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.