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Green Thumb Industries Had a Good Start to Fiscal 2020


May. 15 2020, Published 12:59 p.m. ET

Green Thumb Industries (OTCMKTS:GTBIF) reported its results for the first quarter of fiscal 2020 on Thursday after the market closed. The company reported impressive first-quarter results. The revenue exceeded the estimates. Green Thumb Industries reported a positive EBITDA as well. The stock is soaring today with a good start to fiscal 2020. Let’s take a look at how the stock performed.

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Green Thumb Industries reported a good first quarter

Green Thumb Industries saw 267.6% YoY (year-over-year) revenue growth in the first quarter to $102.6 million. The revenue beat analysts’ estimates of $92.1 million. The COVID-19 pandemic caused marijuana sales to surge for the company. Sequentially, the revenue increased from $75.8 million in the fourth quarter of fiscal 2019. The company said that its revenue grew due to organic growth across its consumer packaged goods and retail businesses. Green Thumb Industries has a market presence across ten states in the US and 42 retail stores, which drove the revenue growth in the quarter.

The adjusted EBITDA profit for the quarter was $25.5 million, which was higher than the first quarter of 2019. The gross margin for the first quarter was 56% compared to 45.8% in the same quarter last year. Green Thumb Industries ended the quarter with cash and cash equivalents of $71.5 million and total outstanding debt of $92.9 million.

Aurora Cannabis (NYSE:ACB) also reported strong revenue growth in its third quarter, which beat the estimates. The earnings were a surprise. The company has been struggling for a while. To learn more, read Aurora Cannabis: Q3 Revenue Beat the Estimates. Meanwhile, Charlotte’s Web reported mixed first-quarter results. Curaleaf is a “buy” before its earnings. Read Why Curaleaf Is a ‘Buy’ before Its Q1 Earnings to learn more.

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Retail footprint in the US

Green Thumb Industries continues to mark its footprint in the US. The company opened three new stores in Illinois and Pennsylvania in the first quarter. Towards the end of the quarter, the company opened two new stores in Ohio and Nevada. Currently, Green Thumb Industries has 44 stores in the US. Also, the company has a license to open a total of 96 stores. With a stronger mark in the US and plans to expand more, Green Thumb Industries could successfully grow its revenue and profits. As a result, I think that Green Thumb is a good cannabis stock if you’re looking at long-term growth for your investments.

Currently, 13 analysts cover Green Thumb Industries stock after its earnings. Among the analysts, 11 recommend a “buy,” while two recommend a “strong-buy.” Analysts’ target price for the stock of 21.97 Canadian dollars for the next 12 months, which remained the same after its earnings. The target price represents a 72% upside potential for the stock as of Thursday’s closing price. The stock closed at 8.00 Canadian dollars yesterday.

The stock closed higher at 11.2% on Thursday, while Aurora Cannabis closed 14.4% higher. Today at 10:33 AM ET, Green Thumb Industries stock and Aurora Cannabis are trading 13.2% and 43.0% higher. Meanwhile, Charlotte Web Holdings (NYSEARCA:CWEB) and Curaleaf (OTCMKTS:CURLF) stock are trading 5.2% and 7.5% higher.


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