Quarterly results from the U.S.’s largest cannabis company Curaleaf Holdings Inc. and Canada’s Canopy Growth Corp. missed analyst estimates, while Ascend Wellness managed to beat forecasts.
Curaleaf
CURLF,
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 analysts 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 is down 29.3% in 2023, compared to a 12.5% drop by the AdvisorShares Pure U.S. Cannabis ETF
MSOS
and a gain of 29.2% by the Nasdaq
COMP.
Canopy Growth Corp.
CGC,
the Canadian cannabis company backed by Constellation Brands Inc.
STZ,
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 stock was up 3% in premarket trading. The stock is down 77.4% in 2023.
Ascend Wellness
AAWH,
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 and ahead of the consensus estimate of $135.2 million.
Ascend Wellness Executive Chairman Abner Kurtin said the results beat internal forecasts, while John Hartmann wrapped 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 stock is down by 3.5% in 2023.
This post was originally published on Market Watch
