MedMen stock is under heavy selling pressure in Thursday's session as MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) released its third-quarter revenue, which didn't meet analysts' forecast. In particular, MedMen's quarterly loss was higher than estimates.
Cannabis retailer MedMen Enterprises was one of the hottest stocks in the segment in the early part of this year when it announced a significant jump in revenue back in February. At that time, revenue came in at $29.4 million, which reflected a significant 864.5% jump and, naturally, MedMen stock went up as a result.
Revenue Jumps 156% Y-O-Y But Misses Estimate
The revenue for the quarter stood at $36.6 million, and on a year-on-year basis grew by a stunning 156%, while the growth from the previous quarter stood at 22%. That being said, the revenue figure fell below analyst estimates of $49.2 million, and that should be a cause for worry for MedMen stock investors.
However, despite the growth in revenue, the net loss continued to mount and came in at $ 23.7 million, which reflected a share loss of $0.20. In the year-ago quarter, the loss stood at $18.4 million.
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MedMen stock is trading lower by 5.60% and now selling at $2.24 on the OTC market. On the Canadian side, MMEN stock is down 5.65% at $3.02.
Rising Expenses
One of the biggest drags on the company’s bottom line was the rising expenses, which in the third quarter soared to $79 million, a rise of 243% year-on-year. However, it is also worthwhile to mention that the company has managed to increase its presence in its strongest territory, California, by capturing 7% of the market and raising its revenue from the state to $24.9 million.
The California revenue rose 5% from the last quarter. MedMen may have had a tough year, and there are still some warranted concerns about the immediate future of the company.
MedMen stock is one of the worst performing cannabis stocks so far in 2019, with a fall of 35%.
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