KSHB stock is one of the biggest gainers in the cannabis sector today after KushCo Holdings (OTCQB:KSHB) reported better than estimated earnings and a strong outlook for FY2020.
KushCo Holdings Inc, which is involved in providing packaging and vape services to the industry, announced its much anticipated fourth-quarter results. While the company managed to grow its revenue handsomely, the net loss in that fourth quarter deepened, and that must be something that investors keep an eye on.
Revenue Jumps 135%
Revenue shot up by 135% to hit $47 million, compared to $20 million in the year-ago quarter. On the other hand, the losses in the quarter rocketed to $11.5 million, which translates to a loss of 13 cents a share. In the year-ago period, the losses had stood at $3.2 million or a loss of 4 cents a share.
The company not only managed to beat analysts’ revenue estimates of $45.8 million, but it also made a bullish projection regarding the year 2020. KushCo stated that the expected revenue for 2020 is going to be in the $230 million to $250 million range.
KSHB stock is up 10% at $1.81 on the OTC market.
KushCo Holdings also projected that $25 million worth of revenue is going to be generated from its newly launched hemp trading business.
The company announced the launch of its hemp business on Thursday, and it goes without saying that it came as a surprise for many market watchers. In its announcement, KushCo stated that it is going to be a hemp trading business whereby it will sell to qualified buyers.
The company went on to state that it is obviously going to abide by all the laws that currently exist with regards to the hemp industry. In addition to that, KushCo said that a “leader in the U.S. industrial hemp farming” space is going to act as its supplier. The company did not provide the name of this supplier.
KSHB stock has recovered almost 40% over the past two weeks.
Featured image: Canva