GTBIF stock is trading in the green on Friday after Green Thumb Industries Inc. (CSE:GTII) (OTCQX:GTBIF) announced strong revenue results for the quarter that ended in March, topping consensus estimates as well as meeting per-share losses expectations.
Revenue Jumps 155%
The Chicago-based marijuana producer reported Q1 2019 net losses of $9.7 million or 6 cents a share relative to the $1.6 million loss reported a year ago. Revenue grew by 34% quarter-on-quarter to $27.9 million and a 155% year-over-year increase from $10.9 million.
Analysts had projected revenue to be around $27.4 million while analysts polled by Factset estimated the Q1 2019 losses to be around $0.06 a share.
Going forward into the second quarter, analysts have estimated losses to be around $0.02 a share on net sales of discounts modeled at $41.2 million.
Once the company’s pending acquisitions close, Green Thumb Industries will operate with 25 open stores. For the latest quarter ended, the company opened additional stores in Florida, Ohio, and Massachusetts. Green Thumb aims to open as many as 20 more in FY2019.
GTBIF stock is up about 2% and selling at $11.64 on the OTC market. On the Canadian market, GTII stock is up about 1.80% at $15.70 CAD.
Green Thumb Well Positioned in Growing Marijuana Market
Last year Green Thumb’s year-over-year revenue grew by 278% with a significant growth witnessed from most of its acquisitions as well as a healthy organic sales growth. Currently, the company has operations in 12 states, including 21 retail cannabis outlets and around 13 production facilities. Green Thumb Industries also has licenses that permit it to open around 67 additional retail stores across the country.
The scope of Green Thumb’s operations makes it one of the leading players in the largest cannabis market in the world. It is estimated that by 2022, the cannabis market in the US will be worth around $22 billion.
Already the company has positioned itself well in most of the states with the biggest cannabis opportunities. With the legalization of hemp in 2018, the company is already capitalizing on the opportunity with acquisition of Beboe, a CBD beauty-care products company.
GTBIF stock has soared about 35% so far in 2019. However, the stock has corrected 55% from its 52-week high of $25.03.
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