Organogenesis Holdings Inc. (NASDAQ: NASDAQ:ORGO) reported a notable performance for the fourth quarter of 2024, exceeding analyst expectations with an earnings per share (EPS) of $0.04 against a forecast of -$0.01. The company’s revenue reached $126.7 million, surpassing the anticipated $109.61 million. Following the earnings announcement, Organogenesis’ stock surged by 14.65% in aftermarket trading, closing at $3.52. According to InvestingPro, the company maintains a "GOOD" overall financial health score of 2.61, with particularly strong scores in profit (3.18) and cash flow (3.12) metrics.
Key Takeaways
- Organogenesis reported a significant earnings beat with an EPS of $0.04, compared to a forecast of -$0.01.
- Revenue for Q4 2024 was $126.7 million, up 27% year-over-year.
- The stock price increased by 14.65% in aftermarket trading.
- The company maintains a strong cash position with $136.2 million and no outstanding debt.
- Organogenesis anticipates challenging market conditions in the first half of 2025.
Company Performance
Organogenesis delivered a robust performance in Q4 2024, with a 27% increase in net revenue year-over-year. The company also achieved a gross profit margin of 75.5%, translating to a gross profit of $96 million. Operating income for the quarter stood at $10.2 million, a significant improvement from an operating loss of $1.3 million in the previous year. The company attributes its success to strong sales force retention and strategic focus on clinical and real-world outcomes data. InvestingPro data reveals the company’s impressive 5-year revenue CAGR of 17%, with a current market capitalization of $391.64 million. InvestingPro subscribers can access 7 additional key tips about ORGO’s financial outlook and market position.
Financial Highlights
- Revenue: $126.7 million, up 27% year-over-year.
- Earnings per share: $0.04, compared to a forecast of -$0.01.
- Gross Profit: $96 million, representing 75.5% of net revenue.
- Operating Income: $10.2 million, versus an operating loss of $1.3 million in the previous year.
- Cash Position: $136.2 million, with no outstanding debt.
Earnings vs. Forecast
Organogenesis exceeded expectations with an EPS of $0.04, compared to a forecast of -$0.01, marking a notable positive surprise. The revenue also surpassed forecasts, reaching $126.7 million against the expected $109.61 million. This marks a significant earnings beat, reflecting a strong performance relative to previous quarters.
Market Reaction
Following the earnings release, Organogenesis’ stock price surged by 14.65% in aftermarket trading, closing at $3.52. This increase reflects positive investor sentiment driven by the company’s earnings beat and strong financial performance. The stock’s movement positions it closer to its 52-week high of $4.57, indicating renewed investor confidence. With a beta of 1.77, ORGO shows higher volatility than the market average, while maintaining a healthy current ratio of 3.09.
Outlook & Guidance
For 2025, Organogenesis has set a net revenue guidance range of $480 million to $535 million. The company anticipates a challenging first half of the year but expects market stabilization by the third quarter. Organogenesis projects a GAAP net income of $9.5 million to $38.8 million, with significant business trend improvements expected in Q3 2025.
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