Why Organogenesis (ORGO) Shares Are Plunging Today - Organogenesis Hldgs (NASDAQ:ORGO)

Organogenesis Holdings Inc's ORGO Q2 FY22 sales reached $121.4 million, down 1% Y/Y, slightly ahead of the consensus of $120.90 million.
The decrease was driven by a 35% decrease in Surgical & Sports Medicine products, partially offset by a 2% increase in Advanced Wound Care products.
The gross margin improved from 76% to 78%. Operating income fell almost 50% to $11.9 million.
Adjusted net income reached $11.3 million compared to $20.3 million a year ago. Adjusted EBITDA was $18.6 million, a decrease of 26% Y/Y.
Guidance: For FY22, Organogenesis forecasts sales of $465-$490 million, a decrease of approximately 1% - an increase of 5% Y/Y and 2% - 7% on an adjusted basis, and compared to the consensus of $494.15 million.
The company forecasted sales of $485-$515 million in May.
The outlook includes sales from Advanced Wound Care products of $435-$456 million, down from the previous outlook of $455-$481 million.
The company reaffirmed Surgical & Sports Medicine product sales of $30-$34 million.
The company expects an adjusted net income of $33-$43 million and adjusted EBITDA of $60-$74 million, down from previous guidance of $47.3-$58.8 million and $79.9-$95.3 million, respectively.
Price Action: ORGO shares are down 21.80% at $4.70 during the market session on the last check Wednesday.

Organogenesis' Q2 Operating Income Fell 50%, Lowers Annual Guidance