ORGO - Why Organogenesis Stock Is Tumbling Today
Shares of Organogenesis Holdings (NASDAQ: ORGO) fell by 19.6% as of 2:45 p.m. ET on Wednesday after the wound care company reported worse-than-anticipated Q2 earnings and also slashed its guidance for the rest of 2022. Its net revenue for the quarter was $121.4 million, a decline of 1% year over year, and its net income collapsed by 58% year over year to reach $8.7 million.
For its fiscal 2022 earnings guidance, management now expects net revenue of between $465 million and $490 million, whereas in its initial guidance, it expected between $485 million and $515 million.
It's clear that uptake of the company's surgical and sports medicine products, as well as its advanced wound care products, is going worse than expected. Management didn't offer too many clues about why that might be, save for citing the "challenging operating environment" in a likely reference to a combination of supply chain issues, inflation, and unstable demand.
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Why Organogenesis Stock Is Tumbling Today