KSHB Stock Gains Slightly as KushCo Reports Solid Jump in Q3 Revenue

KSHB stock

KSHB stock is moving higher by 1% after cannabis supplier KushCo Holdings Inc. (OTCQB:KSHB) reported impressive third fiscal quarter financial results. A 221% increase in revenues is a development that underscores underlying growth, likely to strengthen investor sentiments in the stock.

KushCo Q3: Revenue Growth and Margin Expansion

Revenue for the third fiscal quarter clocked record highs of $41.5 million compared to $12.9 million reported a year ago. Revenues for the first nine months of fiscal 2019 are up by 217% to $101.9 million. KushCo expects full-year revenues to range between $145 million and $150 million.

Gross margins improved by 490 bps, affirming the company’s commitment to profitable and sustainable growth. However, the company plunged to a wider than expected net loss of -$10.6 million compared to a net loss of -$9.2 million reported a year earlier.

KushCo Holdings CEO, Nick Kovacevich, attributes revenue growth and margin expansion to growth on the customer base as well as cross-selling of offerings.

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“We remain committed to investing in the expansion of the business through initiatives targeting high-demand, high-margin opportunities that will facilitate increased cross-selling throughout our robust customer base,” stated Mr. Kovacevich.

KSHB stock is now up 1% and trading at $5.18 on increased volume.

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2019 Outlook: Nasdaq Listing

KSHB stock could receive yet another boost as the cannabis supplier explores strategic partnerships as part of an effort to accelerate revenue and margin goals. The company has already inked a deal with CA Fortune to offer access to a new distribution network.

Going forward, KushCo Holdings is projecting a spike in demand for the company’s core product offerings on the expansion of the cannabis and hemp markets. The customer base is also expected to continue gaining strength thanks to deals with large multi-state operators.

Buoyed by robust growth in recent years, KushCo is exploring a possible listing on the NASDAQ stock exchange. Listing on the US stock exchange should broaden KSHB stock exposure to both retail and institutional investors.

KSHB stock has responded positively to a flurry of positive developments, consequently bouncing back after coming under immense selling pressure in the first half of the year. The stock is already up by more than 20% as investors respond to robust revenue growth as well as margin expansion and its potential listing on the NASDAQ.

>> Read More KushCo News

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