Why Edible Garden (EDBL) Shares Are Plunging Today - Edible Garden (NASDAQ:EDBL)

Edible Garden AG Inc EDBL shares are taking a hit Wednesday morning, falling over 26% as its Q4 results missed the Street view.
EDBL reported fourth-quarter FY22 sales growth of 9.9% year-on-year to $3.10 million, missing the consensus of $3.19 million.
The increase in revenue was driven by increased demand from the existing customer base.
The cost of goods sold was $3 million versus $2.8 million last year, reflecting higher packaging costs due to inflation, higher labor costs due to the tight labor market, and increased rates charged by contract farmers.
Selling, general and administrative expenses leaped 82.3% to $3.1 million. The increase was primarily driven by higher payroll and compensation expenses and other public company expenses that were not incurred in 2021.
EPS loss of $(9.13) missed the analyst consensus of $(6.43).
Jim Kras, Chief Executive Officer of Edible Garden, commented, "Based on our current trajectory, we believe Edible Garden will turn cash flow positive later this year."
Price Action: EDBL shares are trading lower by 26.2% at $3.02 on the last check Wednesday.

Why Edible Garden Shares Are Plunging Today