22nd Century Group (NASDAQ:XXII) Posts Earnings Results, Misses Estimates By $98.00 EPS

22nd Century Group (NASDAQ:XXII) posted its earnings results on Thursday. The biotechnology company reported ($104.00) EPS for the quarter, missing the consensus estimate of ($6.00) by ($98.00), FiscalAI reports. 22nd Century Group had a negative return on equity of 84.37% and a negative net margin of 25.34%.The business had revenue of $2.86 million for the quarter, compared to the consensus estimate of $7.48 million.

Here are the key takeaways from 22nd Century Group’s conference call:

• Retail distribution is expanding: The company plans to grow its VLN and Pinnacle VLN presence from approximately 2,000 stores in 20 states to 5,000 outlets across 35 states by year-end 2026, including new distribution in Metro New York, Northern New Jersey, and California.
• Management reported progress toward improving product mix and margins, with second-quarter gross loss narrowing to $0.3 million from $0.6 million in the first quarter and year-earlier period, driven by greater emphasis on higher-margin Pinnacle and VLN products.
• Revenue declined during the transition: Second-quarter net revenue fell 29% sequentially to $2.9 million, while the company continues to exit low-margin contract manufacturing volume that is expected to be substantially wound down over the next two to three quarters.
• The company remains unprofitable, reporting a $3.3 million operating loss and negative adjusted EBITDA of $3.5 million in the second quarter; it ended the period with $6.1 million in cash and no debt, making successful retail sell-through and repeat orders important to its liquidity outlook.

22nd Century Group Stock Performance

Shares of XXII stock traded down $0.20 during trading on Thursday, hitting $4.11. The company’s stock had a trading volume of 30,378 shares, compared to its average volume of 35,232. The company has a market cap of $2.14 million, a PE ratio of -0.00 and a beta of 0.65. The company has a current ratio of 2.67, a quick ratio of 2.12 and a debt-to-equity ratio of 0.02. The business has a fifty day moving average of $4.98 and a 200-day moving average of $46.28. 22nd Century Group has a 52 week low of $3.61 and a 52 week high of $741.48.

Wall Street Analysts Forecast Growth

XXII has been the subject of a number of recent research reports. Wall Street Zen raised 22nd Century Group to a “sell” rating in a report on Saturday, June 27th. Weiss Ratings upgraded 22nd Century Group from a “sell (e)” rating to a “sell (e+)” rating in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, 22nd Century Group presently has a consensus rating of “Sell”.

Institutional Inflows and Outflows

An institutional investor recently bought a new position in 22nd Century Group stock. Geode Capital Management LLC bought a new stake in 22nd Century Group, Inc (NASDAQ:XXII) during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 46,491 shares of the biotechnology company’s stock, valued at approximately $36,000. Geode Capital Management LLC owned 9.12% of 22nd Century Group at the end of the most recent reporting period. Hedge funds and other institutional investors own 18.06% of the company’s stock.

About 22nd Century Group

22nd Century Group, Inc, founded in 1998 and headquartered in New York, is a plant biotechnology company that applies proprietary breeding and gene modulation technologies to tobacco, hemp and related plant species. The company’s core mission is to develop and commercialize plant-based solutions that address public health, consumer wellness and agronomic needs. Its flagship reduced nicotine tobacco platform is engineered to deliver significantly lower levels of nicotine than conventional tobacco products while retaining the sensory characteristics sought by adult smokers.

Through its branded reduced nicotine tobacco products, marketed under the NEXT Generation™ portfolio, and its GenCanna® subsidiary focused on hemp cultivation and cannabinoid extraction, 22nd Century serves both commercial markets and contract research clients.