Curaleaf stock is witnessing heavy buying activities after early losses on Wednesday following Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) reporting lower than the estimated second-quarter results, but projecting over $1 billion of revenue in 2020.
Poor Quarter
The marijuana sector at large has been in the middle of a bit of a downturn during the course of the past few months but the earnings season has managed to inject some much-needed optimism. While some companies have delivered impressive results, others have disappointed, and Curaleaf Holdings is definitely in the second group. Curaleaf released its earnings for the second quarter late Tuesday and the numbers proved to be eminently disappointing. The marijuana company not only missed the analyst estimates for its revenues, but its losses for the quarter widened as well.
In the second quarter, the company's revenues rose impressively by as much as three times to hit $48.5 million, but it fell short of the analysts’ estimates for the same. However, it was the widening of the net losses that should come as a concern for Curaleaf.
At the time of writing, Curaleaf stock is up a whopping 12.12% at $9.53 CAD, off the session low of $7.75. On the OTC market, CURLF stock is trading at $7.16, up by 11.80%.
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The net losses for the quarter came in at $24.5 million, and it is considerably more than the net loss of $4.93 million that it suffered in the year-ago period. The losses per share came in at $0.05, which is higher than analysts’ estimates of $0.02. On the other hand, analysts estimated that the company’s revenues for the quarter were going to be $49.8 million.
However, going forward the company projects to hit $1 billion in 2020 revenue.
Raises $28.3 Million
Earlier on this week, Curaleaf Holdings announced an interesting deal where it raised $28.3 million by selling six of its properties to Freehold Properties. The company is going to continue to lease these buildings, but it is going to have to take care of the property taxes as well as maintenance. $2.8 million of the $28.3 million is going to be paid in privately held Freehold Properties stock. The company is going to use the fresh capital to further expand its business.
After today's big rally, Curaleaf stock is up over 40% so far in 2019.
Are you bullish about CURLF stock following the quarterly results?
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