GrowGeneration (GRWG) - Get Report shares sprouted upward but then pared gains Thursday after the hydroponic and organic gardening store retailer posted record full-year sales and said it expects to rack up additional strong sales in the first quarter.
GrowGeneration shares were up more than 7% in premarket trading after the Denver-based company posted 2020 GAAP net income of 11 cents a share compared with 4 cents a year earlier. Analysts had been expecting earnings of 16 cents a share.
Sales, however, came in at $193.4 million for the full year, up 143% from $79.7 million last year and above analysts’ forecasts of $192.5 million. Same-store sales rose 63%, while e-commerce sales jumped 123%, the company said.
GrowGeneration said it added 14 new locations to make 52 hydroponic garden centers across 12 states. It also acquired Agron.io, a business-to-business real-time online ordering and fulfillment portal for commercial growers, the company said.
In February, TheStreet looked at the charts of GrowGeneration to determine when to buy the cannabis stock as it surged higher. TheStreet Quant Ratings rates Grow Generation as a Hold with a rating score of C.
Looking ahead, GrowGeneration said it expects first-quarter revenue of between $86 million and $88 million, and adjusted earnings before income, taxes, depreciation and amortization of between $9 million and $9.5 million.
Separately, GrowGeneration said it has appointed Jeffrey Lasher as its chief financial officer. Lasher will replace Monty Lamirato when he retires at the end of the first quarter.
At last check, GrowGeneration shares were down 1.44% at $45.15.