TRUL stock is trading higher on Tuesday after Trulieve Cannabis (CSE:TRUL) (OTCQX:TCNNF) reported better than estimated third-quarter earnings and revenue.
Trulieve Surprises Investors
Barring the first few months of the year, 2019 has been a year to forget for the cannabis industry, but some companies have managed to bounce back a bit in the latest quarter, and Trulieve Cannabis is certainly one of those. Trulieve released its earnings for the third quarter, and the company not only managed to grow its revenue but also beat analysts’ expectations.
Trulieve generated revenue of $70.7 million in the third quarter, and that was comfortably higher than analysts’ estimates of $64.6 million. It should also be noted that the company managed to grow its revenue from the previous quarter quite significantly. In Q2 2019, Trulieve generated revenue of $57.9 million.
On the other hand, the company’s operating expenses for the quarter stand at $18 million, and experts believe that the company could see further growth in the quarters to come. The adjusted EBITDA for the quarter went up to $36.9 million, and that again reflects a significant rise from the $31 million the company generated in the same metric in the previous quarter.
TRUL stock is up as much as 5.40% at $15.76 as a result of these positive results.
At this point in time, Trulieve Cannabis is primarily present in Florida, where it currently has 39 stores. However, it has slowly but surely started expanding into California and Connecticut.
Kim Rivers, the Chief Executive Officer of Trulieve, spoke about the company’s performance: “The third quarter was also successful in further strengthening our position in our existing markets as well as preparing for new market entry.”
The third quarter was a pivotal period for Trulieve Cannabis, and one of the most important reasons for that was the fact that the company also found success in its fundraising initiatives.
The company managed to raise $17 million by selling one of its cultivation sites and then leasing it back. Trulieve also raised $61 million through a public debt deal.
Although TRUL stock has fallen about 25% from this year’s high, the stock hasn’t witnessed the same level of decline as many other cannabis stocks.
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