This was a busy week for the cannabis public markets, with several major companies reporting their quarterly results.
Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) said its net revenue rose by 22% year over year, reaching CA$110 million (US$82 million), in the first quarter of fiscal 2021. Following the results, Cantor Fitzgerald analyst Pablo Zuanic reiterated a Neutral rating on the stock, while raising the price target from CA$ 25.50 ($19.11) to CA$ 27.50.
While the company delivered a sales beat for the first quarter, this was against conservative guidance and its B2B (business-to-business) sales growth lagged the industry, Zuanic said in the note.
Tilray (NASDAQ: TLRY) reported quarterly losses of $(0.66) per share, missing the analyst consensus estimate of $(0.27). The company reported quarterly sales of $50.40 million, falling short of consensus by 8.4 percent. Zuanic maintained a Neutral rating, but lowered his price target from $8 to $7.9.
“Despite some of the major cannabis companies posting healthy revenue numbers, these businesses continue to operate with heavy losses. What’s funny is that the one company that warned investors about potential problems, GrowGeneration, ended up delivering some of the most solid earnings. Remember under-promise and over-deliver,” Debra Borchardt, Editor-In-Chief of Green Market Report, told Benzinga.
MariMed Inc. (OTCQX: MRMD) reported a year-over-year revenue spike of 163% for its second quarter, with core cannabis revenues of approximately $9.6 million, compared with $3.7 million from the same three-month period in 2019.
Acreage Holdings Inc. (CSE: ACRG) (OTCQX: ACRGF) is selling its Baltimore, Maryland-based dispensary to an undisclosed buyer. The terms of the agreement are also undisclosed.
The company also disclosed it generated $27.1 million in revenue during the second quarter. That’s a year-over-year increase of 53%. According to the earnings report, its pro forma revenue (non-GAAP measure) spiked 70% compared to the same quarter last year.
Trulieve Cannabis Corp. (OTCQX: TCNNF) reported second-quarter sales of $120.8 million, up 26% sequentially and ahead of consensus analyst estimates of $106.8 million. Trulieve reported a second consecutive quarter of positive cash flow, which jumped from $11 million in the first quarter to $40 million in the second quarter. Adjusted EBITDA for the quarter was $60.5 million, well ahead of analyst estimates of $45 million.
Green Thumb Industries Inc. (OTCQX: GTBIF) reported second-quarter sales of $119.6 million, up 17% compared to the first quarter and ahead of analyst estimates of $102.6 million. EBITDA margins also improved from 25% in the first quarter to 30% in the second quarter. The company reported a net loss of $12.9 million for the…