Scotts Miracle-Gro (SMG) reported its earnings earlier this morning. Now SMG is surging alongside CannTrust and Emerald Health stocks.
Scotts Miracle-Gro managed to report better-than-expected earnings results today. The stock surged almost 9% today after the announcement. Perhaps optimism in the stock isn’t so much due to the earnings beat—but, rather, the company’s improved outlook.
SMG’s cannabis segment was the biggest reason for its stellar performance in Q3. The company’s Hawthorne segment saw sales growth as high as 138%. As a result of the better-than-expected growth of 16%–17% in the Hawthorne segment, Scotts Miracle-Gro raised its guidance for its full-year EPS. You can find more detail on how the company fared in Q3 in SMG Stock’s Cannabis Bet Is Paying Off.
CannTrust gains on sales potential alongside Scotts Miracle-Gro
Yesterday, CannTrust (CTST)—which is facing a scandal—was also surging. The stock gained almost 11.4% on news that the company was looking to sell its business to potential buyers. The company’s interim CEO, Robert Marcovitch, said that while the company is seeking potential buyers, there’s no firm deal yet.
Along with CannTrust, HEXO Corp. (HEXO) is also facing speculations of a scandal. HEXO, however, responded that it’s closely following regulations. Nevertheless, Health Canada is looking into HEXO’s marketing practices, according to a report from Bloomberg.
HEXO Corp. was also trading in positive territory alongside Scotts Miracle-Gro today, gaining about 1.5%. See CannTrust and HEXO Try to Calm Investors.
Emerald Health climbs higher as well
Emerald Health (EMH) was also trending higher today. The stock gained almost 5.5% after the company announced its new CEO, Riaz Bandali, late last evening. The company also announced a new chief commercial officer, Thierry Schmidt. With these new C-suite executive hires, the company plans to deepen its roots in the medical cannabis market.
How are other stocks doing in the space?
The overall sentiment of the cannabis sector was largely mixed today. Canopy Growth (WEED)(CGC) and Aphria (APHA) were down 1.1% and 0.6%, respectively. On the other hand, the Horizons Marijuana Life Science ETF (HMMJ) was up nearly 1.3%.