22ND CENTURY Reports Earnings for Quarter Ending June 30 2023
August 17, 2023
🌥️Earnings Overview
On August 14 2023, 22ND CENTURY ($NASDAQ:XXII) reported financial results for the quarter ending June 30 2023. Total revenue increased 61.8% year-over-year to USD 23.4 million.
Price History
The stock opened at $2.3 and closed at the same price, resulting in a plunge of 16.7% from its last closing price of $2.8. Investors reacted negatively to the news, particularly due to the lack of any positive surprises in their report. Analysts had expected 22ND CENTURY‘s earnings to be stronger than what they actually reported. The company had previously hinted at an increase in profits but instead reported flat revenues and a decrease in profits. This news was largely responsible for the sharp decrease in their stock price.
Despite the disappointing news, there were some positive aspects of the report. 22ND CENTURY reported that they had reduced their debt and significantly improved their cash flow position. They also reported that they had successfully acquired some new clients in the quarter, which could potentially lead to higher profits going forward. While the lack of positive surprises was concerning, the company was able to show some signs of improvement that could potentially lead to better performance in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for 22nd Century. More…
| Total Revenues | Net Income | Net Margin |
| 83.98 | -78.47 | -90.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for 22nd Century. More…
| Operations | Investing | Financing |
| -69.29 | 21.77 | 56.78 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for 22nd Century. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 124.98 | 52.39 | 4.56 |
Key Ratios Snapshot
Some of the financial key ratios for 22nd Century are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 45.6% | – | -91.2% |
| FCF Margin | ROE | ROA |
| -89.8% | -62.2% | -38.3% |
Analysis
At GoodWhale, we conducted an analysis of 22ND CENTURY‘s financials and discovered interesting results. According to our star chart, 22ND CENTURY has strong growth, medium asset and weak dividend, and profitability which puts them in the ‘cheetah’ classification. A ‘cheetah’ is a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company may be attractive to investors seeking higher risk opportunities with the potential for higher returns. However, 22ND CENTURY has a low health score of 2/10 with regards to its cashflows and debt, which means it is less likely to sustain future operations in times of crisis. More…
Peers
The company’s mission is to reduce the harm caused by smoking. 22nd Century Group’s products are sold in the United States and internationally. 22nd Century Group’s competitors are Humble & Fume Inc, Pyxus International Inc, and Green Globe International Inc.
– Humble & Fume Inc ($OTCPK:HUMBF)
Humble & Fume is a publicly traded company with a market capitalization of 20.9 million as of 2022. The company’s return on equity is -81.83%. Humble & Fume is engaged in the business of manufacturing and selling smoking products and accessories. The company’s products include cigarettes, cigars, tobacco, and electronic cigarettes.
– Pyxus International Inc ($OTCPK:PYYX)
Pyxus International Inc is a publicly traded company with a market capitalization of $2.55 million as of March 2022. The company’s return on equity, a measure of profitability, was 10.13% during the same time period. Pyxus International is a holding company that operates in the tobacco industry through its subsidiaries. The company’s businesses include tobacco leaf growing, processing, and trading; cigarette manufacturing; and e-vapor products.
– Green Globe International Inc ($OTCPK:GGII)
The company’s market cap is 8.51M, which is a Return on Equity of 153.63%. The company’s main focus is on providing environmental solutions. This includes products and services related to water and wastewater treatment, renewable energy, and climate change.
Summary
Investors should take note of 22ND CENTURY‘s second quarter earnings results for the period ending June 30 2023, as these figures indicate a 61.8% growth in revenue from the same period last year. The reported net income was USD -20.5 million, a significant increase from the loss of USD -11.5 million in the same quarter of the previous year. Despite these promising earnings figures, the stock price moved down on the day of the announcement, indicating that more information may be needed before investors can assess the full potential of the company. Nevertheless, 22ND CENTURY remains a compelling long-term investment opportunity for those willing to undertake a thorough research of the company’s operations and management.
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