Charlotte’s Web Holdings’ Preliminary Q1 Results

On May 8, Charlotte’s Web Holdings (CWEB) (CWBHF) released its preliminary first-quarter results after the markets closed. The company expects to post revenues of $21 million–$22 million in the first quarter. Charlotte’s Web Holdings posted revenues of $21.5 million in the fourth quarter and $13.5 million in the first quarter of 2018. The company expects 50% of its first-quarter revenues to come from the eCommerce channel—compared to 57% in the fourth quarter.

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Charlotte’s Web Holdings is actively expanding its distribution. The company’s products are available across more than 6,000 locations in the United States as of May 8. The company has added more than 2,300 retail locations this year—more than what it added in fiscal 2018.

Charlotte’s Web Holdings expects to post an adjusted EBITDA of $4.0 million–$4.5 million in the first quarter. The company’s net income is expected to be $2.0 million–$2.5 million. Charlotte’s Web Holdings is among a few cannabis players that posted a positive net income. Greenlane Holdings (GNLN) posted a net loss of $5.9 million in 2018. Emerald Health Therapeutics’ (EMH) net loss widened to 30.9 million Canadian dollars in 2018 from 8.8 million Canadian dollars in 2017.

Charlotte’s Web Holdings closed down 6.9% on May 8. Looking at the cannabis sector ETFs, the Horizons Marijuana Life Sciences ETF (HMMJ) rose 0.19%, while the ETFMG Alternative Harvest ETF (MJ) fell 0.26%. The AdvisorShares Pure Cannabis ETF (YOLO) saw an upwards price action of 0.37%.