22nd Century misses earnings by $98.00, revenue below forecasts
Biotech firm’s quarterly earnings fell short of estimates by $98.00 per share as revenue declined. Shares slipped in after-hours trading.
22nd Century Group Inc. reported quarterly earnings that missed analyst expectations by $98.00 per share, while revenue also fell short of projections.
The biotechnology company, which focuses on tobacco harm reduction and plant-based products, disclosed adjusted earnings per share of $0.02, compared with the $98.02 forecast by Refinitiv. Revenue totaled $28.7 million, below the $31.2 million estimate.
Gross margin contracted to 17.4% from 21.1% in the prior-year period, reflecting higher production costs. Operating expenses rose 12% year-over-year, driven by increased research and development spending.
Chief Executive James Mish said the company remains on track to meet its full-year guidance but acknowledged near-term pressures from inflation and supply chain challenges. 22nd Century reiterated its 2024 revenue target of $120 million to $130 million.
Shares of 22nd Century fell 4.5% in extended trading following the report.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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