Why is Hempacco (HPCO) stock rising today?

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 Why is Hempacco (HPCO) stock rising today?
Image source: © Seemitch | Megapixl.com

Highlights:

  • The HPCO stock jumped over 58 per cent in the morning trading on October 12.
  • The company said that it has noted robust growth in its first half of fiscal 2022 revenue.
  • Hempacco also witnessed a decrease in its operating expenses in Q2 FY22.

The stocks of Hempacco Co., Inc. (NASDAQ: HPCO) seem to have gained traction from the market participants on Wall Street as reflected by the jump in its price.

The price of the HPCO stock jumped over 58 per cent in the morning trading on Wednesday, October 12 after the tobacco company reported robust growth in the first half of fiscal 2022.

Before taking a closer look into its stock performance, let's explore its recent financials with Kalkine Media®.

Latest financial highlights of Hempacco

Hempacco is a tobacco company specialising in herbs and alternative products to nicotine cigarettes. The company manufactures and sells herbs, spices, cannabinoids, and other products.

The company said on October 12 that it had noted a year-over-year (YoY) growth of around 486 per cent in its revenue for the first half of the running year.

Hempacco's total revenue in the first half of 2022 was around US$ 2.8 million. Meanwhile, the co-founder and CEO of the California-based tobacco firm, Sandro Piancone, said its revenue also "accelerated" in Q2 FY22. Its second-quarter revenue was up about 93 per cent from the first quarter, while its gross operating margins rose from 18 per cent to 25 per cent.

In addition, the company also managed to cut its costs, which resulted in a decrease of 45 per cent in its operating expenses in Q2 FY22 from the first quarter. It has also helped the company to achieve a "breakeven EPS" in the second quarter, Mr Piancone said.

Hempacco Co, Inc. (HPCO) H1 FY22 and Q2 FY22 earnings highlightsSource: ©Kalkine Media®; © Canva Creative Studio via Canva.com

Bottom line:

The shares of the HPCO stock mounted up 58.9 per cent at 9:39 am ET on October 12 to trade at US$ 3.48, while its trading volume was around 9.86 million. The HPCO stock closed at US$ 2.19 in the previous session.

The US$ 75.12 million market cap company said that its collaboration with HBI-Raw has helped in the robust growth of its first-half revenue. Notably, the collaboration was launched in the final quarter of last year.

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