Green Thumb Industries (GTBIF) stock jumped after the cannabis producer reported third-quarter earnings doubled on a stronger-than-expected revenue rise of 49%.
The company, with offices in Chicago and Vancouver, reported profit of 8 cents a share against 4 cents in the year-earlier quarter. Revenue grew 49% to $233.7 million from $157.1 million.
A survey of analysts by FactSet was expecting profit of 9 cents a share on revenue of $232.5 million.
At close, Green Thumb shares were up 15.79% higher at $31.53.
'Overall performance was driven by expanded distribution of Green Thumb's branded products and increased traffic in the company's 65 open and operating retail stores," Green Thumb said in a statement. GreenThumb has 16 manufacturing facilities.
The company operates in California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Virginia.
At the end of the quarter, Green Thumb had $285.8 million in cash on hand.
In a report, Cowen analyst Vivien Azer affirmed her outperform rating and $45 price target on Green Thumb.
"While the competitive landscape remains intense, GTI's premium positioning is clearly a benefit," she wrote.
Before the company reported, Cowen had lowered its revenue estimate. Green Thumb beat that reduced estimate, she said.
Gross-profit margin was flat at 55.4%, beating Cowen's estimate by 0.5 percentage point.
The investment firm is "holding our full-year numbers broadly unchanged," Azer wrote.
On Oct. 15, after the quarter ended, Green Thumb raised an additional $33.2 million of debt at 7% under its $250 million facility. The company said it would use the funds for working capital, investments and other purposes.
Cannabis company shares have been going strong since news of a Republican-led attempt at legalization leaked last weekend.
We’re holding a Veterans Day Sale for our Action Alerts PLUS investment club. Get in on the conversation and get the latest investment ideas and trading strategies. For 48 hours, we’re offering 30% off with this special sale. Click here and save $150.