Curaleaf’s Revenues: Analysts’ Expectations in 2019

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Fourth-quarter revenues

Before we discuss analysts’ 2019 estimates, we’ll look at Curaleaf Holdings’ (CURA) (CURLF) fourth-quarter performance. The company posted its earnings on March 20. For the quarter ending on December 31, Curaleaf posted revenues of $32.0 million—49.6% growth from $21.4 million in the third quarter of 2018. The company’s revenues rose 408.9% year-over-year. The revenue growth was driven by acquisitions in 2017 and 2018 and new dispensaries. Curaleaf had $34.9 million in revenues from managed assets—an increase of 43.1% from the third quarter of 2018.

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During the quarter, Curaleaf incurred a net loss of $16.5 million—compared to profits of $0.6 million in the fourth quarter of 2017. The one-time expense associated with acquisitions and financing, increased interest expense, and higher depreciation and amortization costs caused the company’s net profits to fall.

2019 guidance

For 2019, Curaleaf’s management expects its revenues from managed assets to reach $400 million. The company’s management is looking to acquire licenses, expand its presence in its current market, and increase its exposure to mass markets to drive its sales.

Analysts expect Curaleaf to post revenues of 428.34 million Canadian dollars in 2019—a rise of 455.9% from 77.06 million Canadian dollars in 2018.

Analysts expect Curaleaf to become profitable in 2019. They expect the company’s net profits to be 59.2 million Canadian dollars in 2019—compared to a loss of 36.7 million Canadian dollars in 2018.

Valuation multiple

As of March 21, Curaleaf was trading at a forward EV-to-sales multiple of 6.95x. MedMen Enterprises (MMEN) (MMNFF), Acreage Holdings (ACRG-U) (ACRGF), and Planet 13 Holdings (PLTH) (PLNHF) were trading at forward EV-to-sales multiples of 4.18x, 2.64x, and 1.2x, respectively.

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