Green Thumb Sees Consensus Estimate Fall To $49.89 After Q4 Earnings

Earlier this week, Green Thumb Industries (CSE: GTII) reported its fourth quarter financial results. The company reported sequential revenue growth of 4.2% to $243.6 million. The company reported flat gross profits of $128.64 million for the quarter and an adjusted EBTIDA of $76 million. The company also saw its net income grow 13% quarter over quarter to $22.81 or $0.01 earnings per share.

For the year, the company saw its revenue grow to $893.56 million, an increase of 60% year over year. The company also reported gross profits of $491 million and adjusted EBITDA of $307.8 million. The company reported net income of $75.4 million or $0.34 per share. The company had $230.4 million in cash and equivalents at the end of the year.

Green Thumb saw a number of analysts lower their 12-month price target, bringing the average price target to C$49.89, down from C$54.47 last month. There are 17 analysts covering the stock with 5 having strong buy ratings and the other 12 have buy ratings. The street high sits at C$73, which is a 225% upside to the current stock price.

In Canaccord’s fourth quarter review, they reiterate their buy rating but lower their 12-month price target from C$46 to C$43, applauding Green Thumbs’ performance under a challenging operating environment. The price target change comes after they made small downward adjustments to their 2022 estimates and added an additional risk premium to the stock due to macro-level headwinds.

For the quarterly results, Green Thumb beat Canaccord’s revenue and gross margin estimates of $235.4 million and $123.8 million, respectively. They note that their estimates were much more muted than prior. Though the company saw its adjusted EBITDA take a small hit but, “maintained what is still a healthy margin profile.” The revenue beat is attributed to new store openings in Illinois, Nevada, and Massachusetts.

Canaccord says that even though Green Thumb did not provide any forward-looking revenue guidance, their channel checks seem to suggest that the headwinds facing the company have persisted throughout the first quarter of 2022. Green Thumb’s biggest market, Illinois, saw a 15% month-over-month decline in January.

For the company’s gross margin dropping slightly to 52.8%, Canaccord says that this was expected and noted management has been experiencing CPG pricing pressures and that they expect the company to see gross margins of 50% or higher. As for the company’s adjusted EBITDA, which came in slightly below the company average margin prior at 31.2%, Canaccord says that this decline should be transitory as the sector should continue to see sustained growth and recent M&A will help re-accelerate the company’s fundamentals in 2022.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

BMO Cuts Roger Communications’ Price Target After Boardroom Drama Flares Up

On October 8th, The Globe and Mail reported on the recent and abrupt departure of...

Sunday, October 17, 2021, 01:07:00 PM

Organigram: Haywood Lowers Price Target To $3.00

On November 23rd, Organigram Holdings (TSX: OGI) announced its fourth quarter fiscal 2021 results. The...

Monday, November 29, 2021, 10:15:00 AM

Ayr Wellness Sees Canaccord Cut Target To $30 Following Q2 Miss

On August 18, Ayr Wellness (CSE: AYR.A)s reported its second quarter financial results. The company...

Sunday, September 4, 2022, 03:01:00 PM

Canaccord: 2020 To Be Transition Year For Medipharm Labs

Last week, Medipharm Labs (TSX: LABS) reported their second-quarter earnings. Revenue came in at $13.9...

Saturday, August 22, 2020, 01:38:00 PM

Green Thumb: Analysts Raise Targets Following Strong Q1 Results

Green Thumb Industries Inc. (CSE: GTII) reported their first quarter financials after market close on...

Saturday, May 15, 2021, 01:41:00 PM