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

22nd Century Group (NASDAQ:XXII) posted its quarterly earnings results on Thursday. The biotechnology company reported ($104.00) EPS for the quarter, missing analysts’ consensus estimates of ($6.00) by ($98.00), FiscalAI reports. The business had revenue of $2.86 million during the quarter, compared to analysts’ expectations 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 Price Performance

Shares of NASDAQ:XXII traded down $0.20 during midday trading on Thursday, reaching $4.11. 30,307 shares of the company’s stock traded hands, compared to its average volume of 35,231. The company has a fifty day simple moving average of $4.98 and a two-hundred day simple moving average of $46.28. 22nd Century Group has a 1 year low of $3.61 and a 1 year high of $741.48. The company has a market cap of $2.14 million, a P/E ratio of -0.00 and a beta of 0.65. The company has a debt-to-equity ratio of 0.02, a quick ratio of 2.12 and a current ratio of 2.67.

Hedge Funds Weigh In On 22nd Century Group

A hedge fund recently bought a new position in 22nd Century Group stock. Geode Capital Management LLC purchased a new stake in shares of 22nd Century Group, Inc (NASDAQ:XXII) during the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 46,491 shares of the biotechnology company’s stock, valued at approximately $36,000. Geode Capital Management LLC owned about 9.12% of 22nd Century Group at the end of the most recent quarter. Institutional investors own 18.06% of the company’s stock.

Analyst Ratings Changes

Several research firms have recently weighed in on XXII. Weiss Ratings raised 22nd Century Group from a “sell (e)” rating to a “sell (e+)” rating in a research report on Tuesday, July 28th. Wall Street Zen raised shares of 22nd Century Group to a “sell” rating in a research report on Saturday, June 27th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company presently has an average rating of “Sell”.

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.