Cannabis Watch: Curaleaf and Canopy Growth miss third-quarter analyst marks, while Ascend Wellness and Green Thumb Industries beat forecasts

Quarterly results from the U.S.’s largest cannabis company, Curaleaf Holdings Inc., and from Canada’s Canopy Growth Corp. missed analyst estimates, while Ascend Wellness’s stock rose sharply after it beat forecasts.

said its third-quarter net loss widened to $92.23 million, or 13 cents a share, from a loss of $51.39 million, or 8 cents a share, in the year-ago quarter. The company’s adjusted loss in the latest quarter was 9 cents a share, wider than the Factset consensus estimate for a loss of 6 cents a share.

Curaleaf’s third-quarter revenue rose to $333.17 million from $324.64 million but missed the analyst estimate of $340.2 million.

One contributor to Curaleaf’s loss was its increased cost of goods sold, which rose to $183.12 million in the third quarter, from $158.12 million in the year-ago quarter.

On the plus side, the company also booked $33 million in free cash flow from continuing operations.

Curaleaf’s stock fell by 4% on Friday. The stock is down 32% in 2023, compared with an 11.3% drop by the AdvisorShares Pure U.S. Cannabis ETF
and a gain of 29.9% by the Nasdaq

Canopy Growth Corp.
the Canadian cannabis company backed by Constellation Brands Inc.
reported a second-quarter loss of 31 cents a share, while analysts were looking for a loss of 11 cents a share, according to FactSet data.

The company’s revenue of $50.6 million also missed the analyst estimate of $53.5 million.

On the plus side, Canopy Growth said its Canadian cannabis business booked its third straight quarter of organic revenue growth while “significantly” cutting costs.

Canopy Growth’s stock was down by 2.5%. The company’s share price is now down 77.8% in 2023.

Ascend Wellness
said its third-quarter loss of 5 cents a share beat the consensus estimate for a loss of 8 cents a share.

Revenue rose by 27% to $141.3 million, ahead of the consensus estimate of $135.2 million.

Ascend Wellness Executive Chair Abner Kurtin said the results beat internal forecasts, with John Hartmann wrapping up his first full quarter as chief executive.

“We’ve been diligently optimizing operations and fortifying our team,” Hartmann said. “Early signs of results are encouraging, with a noteworthy 13% sequential surge in retail revenue, chiefly propelled by the successful launch of adult-use sales in Maryland.”

The company’s wholesale business grew 21% from the previous quarter, with growth in New Jersey, Illinois and Massachusetts, he said.

Ascend Wellness’s stock was up 3.6% on Friday.

In a busy week for cannabis earnings, Green Thumb Industries Inc.
continued its run as one of the only profitable cannabis companies.

Green Thumb Industries on Wednesday said its third-quarter profit increased to $10.51 million, or 5 cents a share, from $9.83 million, or 4 cents a share, in the year-ago quarter.

Third-quarter revenue of $275.4 million rose from $261.19 million in the year-ago quarter and ahead of the analyst estimate of $257.3 million.

Green Thumb Industries cited its business in Maryland for its strong performance.

The company’s stock rose by 2.6% on Friday. It’s now up 10.2% for 2023.

Also read: Americans’ support for legalizing cannabis edges up to 70% and Ohio voters OK pot referendum, as cannabis stocks rise

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