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What to Expect from Cannabis Player Curaleaf’s Q3 Earnings

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A look at Curaleaf

Curaleaf Holdings (LDVTF) is one of the leading cannabis operators in the United States. Curaleaf Holdings has announced that it will release its third-quarter earnings results on November 26.

We’ll discuss analysts’ estimates for its EPS and revenue in this article.

The chart above compares Curaleaf Holdings’ revenues since the third quarter of 2017 and estimates for its third quarter of 2018.

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Revenue estimates for the third quarter

Analysts expect Curaleaf Holdings to report revenue of 31.4 million Canadian dollars in the third quarter.

Curaleaf’s business includes three product brands: Curaleaf, Curaleaf Hemp, and UKU Craft Cannabis.

Curaleaf’s product portfolio includes edibles, mints and lozenges, capsules and tinctures, vape oil and oil concentrates, flowers and pre-rolls, and topical lotions.

The Curaleaf Hemp brand’s product portfolio includes capsules and tinctures, disposable vape pens, and topical lotions.

The UKU brand’s product portfolio includes flowers and pre-rolls, vape cartridges, disposable vape pens, high-potency drippers, mints, and high-terpene CO2 sap.

Curaleaf operates through 30 dispensaries, nine processing sites, and 12 cultivation sites across 12 states. Some of the states in which Curaleaf operates include Florida, New York, New Jersey, and Massachusetts.

Profitability estimates

Analysts expect Curaleaf’s gross profit margin to be ~40.0% in the third quarter. However, due to higher general and administrative expenses and higher operating expenses, its EBITDA margin is expected to be -22.8% in the quarter.

The company is expected to report net income of -12.0 million Canadian dollars in the quarter. Its adjusted EPS are expected to be -0.03 Canadian dollars in the period.

The ETFMG Alternative Harvest ETF (MJ) holds its investments in cannabis companies, including 10.1% in Canopy Growth (WEED), 6.0% in GW Pharmaceuticals (GWPH), and 2.6% in Corbus Pharmaceuticals (CRBP).

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