Edible Garden (NASDAQ:EDBL) stock is rocketing higher on Wednesday after the company announced preliminary results for the first quarter of 2024.
According to Edible Garden, its produce revenues for the quarter have jumped 40% year-over-year (YOY). The company also notes that its cut herb revenue increased 200% from the same period of the year prior.
Edible Garden notes that these massive revenue increases are thanks to its investments in equipment and infrastructure. Additions to its retail distribution also resulted in herb production increasing 12-fold.
Edible Garden CEO Jim Kras said this about the earnings news:
“To support our growth, in 2023, we placed a major emphasis on becoming a vertically integrated herb supplier, which included investments in equipment such as coolers to support increased production in both our Belvidere, New Jersey and Grand Rapids, Michigan facilities […] As we increase our production volume and leverage our fixed costs, we expect to benefit from improved margins and economies of scale.”
What’s Next for EDBL Stock?
While the earnings news today is sending EDBL stock higher, investors will want to note that not all of Wednesday’s news is positive. That’s due to the company not meeting Nasdaq listing standards.
The problem has to do with the company’s publicly held shares, which are below the 500,000 minimum. That’s due to a 1-for-20 reverse stock split earlier this month. The company has until May 28 to submit a plan to regain compliance or face delisting.
EDBL stock is up 90.8% as of Wednesday morning with more than 8.4 million shares traded. The company’s daily average trading volume is about 48,000 shares.
There are more stock market stories worth reading about below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
