Edible Garden stock nearly doubles on Q1 earnings report

Edible Garden AG Inc (NASDAQ: EDBL) nearly doubled in premarket on Wednesday after reporting a significantly year-over-year increase in its first-quarter revenue.

Edible Garden CEO on Q1 earnings

The organic food company saw its revenue come in at $3.1 million in Q1 that translates to a near 28% increase versus last year.

$EDBL attributed the strength to customer demand and expansion of its product lineup. Jim Kras – the chief executive of Edible Garden said in a press release today:

Our transition away from third-party growers has accelerated, with Edible Garden now producing approximately 95% of the Edible Garden fresh product line in Company-owned facilities.

Note that Q1 typically is the slowest quarter for the Nasdaq-listed firm. Edible Garden stock is still down well over 20% versus its year-to-date high.

Why else is Edible Garden stock up today?

Edible Garden also narrowed its per-share loss sharply from $44.19 per share to $13.65 a share in fiscal Q1, as per its earnings report today.

The company based out of New Jersey, United States improved its gross margin by a whopping 171 basis points as well. According to CEO Jim Krash:

We believe we have now reached a key inflection point in our evolution as a Company. With all the necessary elements in place, we are poised to boost our margins in coming quarters.

Cutting reliance on third-party growers also helped $EDBL boost its gross profit by about 196% in the first quarter. Wall Street currently has a “buy” rating on Edible Garden stock.

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