22nd Century Group (NASDAQ:XXII) Posts Earnings Results, Misses Expectations By $9.60 EPS

22nd Century Group (NASDAQ:XXII) posted its earnings results on Thursday. The biotechnology company reported ($15.60) EPS for the quarter, missing analysts’ consensus estimates of ($6.00) by ($9.60), Zacks reports. The firm had revenue of $2.86 million for the quarter, compared to analyst estimates of $7.48 million. 22nd Century Group had a negative return on equity of 84.37% and a negative net margin of 25.34%.

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

NASDAQ XXII traded up $0.17 on Friday, hitting $4.28. 7,944 shares of the company’s stock were exchanged, compared to its average volume of 35,056. The company has a debt-to-equity ratio of 0.02, a current ratio of 2.67 and a quick ratio of 2.12. The firm’s 50-day moving average price is $4.86 and its two-hundred day moving average price is $44.55. The firm has a market cap of $2.23 million, a price-to-earnings ratio of -0.00 and a beta of 0.65. 22nd Century Group has a fifty-two week low of $3.61 and a fifty-two week high of $735.00.

Analyst Ratings Changes

A number of equities research analysts have weighed in on XXII shares. Wall Street Zen upgraded 22nd Century Group to a “sell” rating in a research note on Saturday, June 27th. Weiss Ratings raised shares of 22nd Century Group from a “sell (e)” rating to a “sell (e+)” rating in a report on Tuesday, July 28th. One research analyst has rated the stock with a Sell rating, According to MarketBeat.com, 22nd Century Group presently has an average 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) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm 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 as of its most recent filing with the Securities & Exchange Commission. Hedge funds and other institutional investors own 18.06% of the company’s stock.

22nd Century Group Company Profile

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.