3 Cannabis Earnings Reports To Be Aware Of…

After Canopy Growth’s terrible earnings report earlier in February, many cannabis stocks traded lower.

We find this to be a good time to look at the cannabis sector as earnings season is kicking into high gear. With the companies that are expected to report soon, it really cannot get worse than what Canopy Growth released. In the coming months, we expect United States (US) multi-state-operators to report big numbers and are bullish on this market in particular.

Today, we want to highlight 3 cannabis companies that have reported quarterly earnings and believe our readers should be aware of them.

1. In late February, Green Thumb Industries (OTC: GTBIF) (CSE: GTII) reported quarterly financial results and we are bullish on the US MSO. During the quarter, Green Thumb reported approx. $259 million of revenue and $81 million of adjusted Operating EBITDA (or 31% of revenue). At the end of the quarter, the company reported to have $178 million of cash on hand and we are favorable on the growth prospects that are associated with the business. Although revenue increased by 6% on a year-over-year basis, it fell approx. 1% when compared to the prior quarter and we will monitor how the business continues to perform.
2. Last week, Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) reported fourth quarter financial results and generated more than $300 million of revenue during the period. Following the release, the stock has been under pressure and we have been closely monitoring price movements. We believe the company has substantial growth prospects and will keep an eye on how the management team continues to execute.
3. A few weeks ago, Cronos Group Inc. (Nasdaq: CRON) (TSX: CRON) reported fourth quarter financial results. During the period, the company only generated $22.9 million of revenue. This amount is lower than what the business reported in the same period last year and we remain on the sidelines with Cronos. The company attributed the lower revenue to lighter cannabis flower sales in Canada as well as lower sales in the US segment. We have been cautious with Cronos and will monitor how the stock continues to perform.

We are waiting to analyze earnings reports for several other North American cannabis companies. If you would like to be added to our list, please send an email to support@technical420.com

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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