uploads///Graph

Charlotte’s Web Holdings’ EPS Expected to Spike

By

Jan. 4 2019, Updated 11:10 a.m. ET

Earnings performance in 2018 YTD

In the third quarter, Charlotte’s Web Holdings (CWBHF) reported gross profits of $13.8 million, a YoY rise of 54%. The company reported a gross profit margin of 78% in the third quarter. Charlotte’s Web Holdings also reported adjusted EBITDA of $5.4 million, a YoY rise of 23%. The company reported an adjusted EBITDA margin of 31% in the third quarter.

Charlotte’s Web Holdings reported a $37.1 million profit increase in the first nine months of fiscal 2018, a YoY rise of 80%. The company also reported adjusted EBITDA of $16.2 million, a YoY rise of 71%. In the first nine months of 2018, Charlotte’s Web Holdings’ gross profit margin and adjusted EBITDA margin were 77% and 34%, respectively.

Article continues below advertisement

EPS projections

Wall Street analysts expect Charlotte’s Web Holdings to report adjusted EPS of $0.15 in fiscal 2018. The company is also expected to report adjusted EPS of $0.35 in fiscal 2019, a YoY rise of 133.33%. Wall Street analysts have also forecasted Charlotte’s Web Holdings’ fiscal 2020 adjusted EPS to be $0.54, a YoY rise of 54.29%. Wall Street analysts have also projected Charlotte’s Web Holdings’ adjusted EPS to be close to $0.06 in the fourth quarter.

EBITDA guidance

According to the company’s investor presentation, Charlotte’s Web Holdings expects to report adjusted EBITDA between $23 million and $30 million in fiscal 2018, significantly higher than $14.1 million reported for fiscal 2017. The company has also forecasted its adjusted EBITDA as a percentage of revenue to fall in the range of 35% to 37% in fiscal 2018. Charlotte’s Web Holdings also expects the percentage of adjusted EBITDA to total revenue to fall between 35% and 37% for fiscal 2019.

In the next article, we’ll discuss business drivers for Charlotte’s Web Holdings in greater detail.

Advertisement

More From Market Realist