Organogenesis Q2 Earnings Beat Expectations; Sales Jump 79%; Raises FY21 Sales Outlook

Organogenesis Holdings Inc ORGO Q2 revenues increased 79% Y/Y to $123.2 million, edging out analysts' average expectation of $107.30 million.
The increase was driven by a $51.7 million increase, or 87%, in net revenue of Advanced Wound Care products and a $2.5 million growth, or 27%, in net revenue of Surgical & Sports Medicine products.
Gross margin expanded from 71% to 76% resulted primarily from increased sales volume and a shift in product mix to higher gross margin products.
The Company posted an operating income of $23.6 million, compared to an operating loss of $2.3 million a year ago.
Adjusted EBITDA income was $25.1 million, compared to $0.3 million in Q2 FY20.
ORGO reported EPS of $0.15 per share, compared to a net loss of $(0.05), ahead of the consensus of $0.07.
Organogenesis held $90.3 million in cash and restricted cash and $83.5 million in debt obligations.
FY21 Guidance: Organogenesis sees revenues of $456 million - $472 million (consensus $446.28 million), against previous guidance of $438 million and $454 million.
It includes $423 million - $436 million from Advanced Wound Care products and $33 million - $36 million from the Surgical & Sports Medicine segment and expects positive net income and adjusted EBITDA for FY21.
Separately, Organogenesis announced a new credit agreement led by Silicon Valley Bank of $200 million.
Price Action: ORGO shares closed at $15 on Tuesday.

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