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Cannabis Industry News

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Cannabis sector News

Last week was a tough week for cannabis stocks as ETFs plummeted with disappointing earnings reports. The ETFMG Alternative Harvest ETF (NYSE: MJ), the AdvisorShares Pure Cannabis ETF (NYSE: YOLO),  The Cannabis ETF (NYSE: THCX), the Amplify Seymour Cannabis ETF (NYSE: CNBS) all lost around 6% on average. Even the SPDR S&P 500 ETF Trust (NYSE: SPY) was down 0.4%. The major disappointment was delivered by Aurora Cannabis Inc. (NYSE: ACB)’s beyond disappointing fourth-quarter earnings report. But, the overall industry is not doing bad at all as 2020 will be remembered as a pivotal year.

Expanding market

Despite wreaking havoc on many industries across the world, the legal pot business saw booming revenues as more and more countries legalized marijuana. BDS Analytics Inc., a Boulder-based cannabis market intelligence and research company projected retail cannabis industry is projected to hit $19.7 billion in sales in 2020, marking a 38% jump. Moreover,  BDS predicts growth will persevere as sales are expected to reach $47.2 billion by 2025. These results are confirmed by another study by LeafLink, Flowhub, and Vangst that each approached the cannabis industry from a different vantage point – wholesale, dispensaries) and employment. Together, they found that sales stabilized at 40% growth rate, implying growth will remain even after the pandemic.

What happened with Aurora?

The Edmonton, Canada-based company reported a loss of $2.5 billion for the fiscal year. Total net revenue of $54.1 million dropped 5% from the previous quarter. More specifically, revenue for consumer cannabis in the recreational market dropped 9% to $26.7 million. Revenue for medical cannabis only increased 4% as net revenue was $24.2 million, helped by market growth in Canada and Europe. Continuing operations resulted in a loss of $1.40 billion. The shares plummeted following the results, already being down 91% over the past 12 months, reducing the company’s market value to a fraction of its former size.

Departure of Peltz

The past year has been a tough one for Aurora and it doesn’t seem to be getting any easier as on Monday, the billionaire investor Nelson Peltz resigned as advisor. Aurora brought in Peltz after Canadian competitors Canopy Growth (NYSE: CGC) and Cronos Group (NASDAQ: CRON) locked up multibillion-dollar investments from global liquor giant Constellation Brands (NYSE: STZ) and Virginia-based Altria (NYSE: MO), hoping that he will strike a similar deal with his connections to major U.S. consumer goods firms like PepsiCo (NASDAQ: PEP) and Mondelez International (NASDAQ: MDLZ). Being a director of fast-food holding firm Wendy’s Co. (NASDAQ: WEN) and Procter & Gamble (NYSE: PG), he seemed like the perfect person to help the company expand internationally. It was a good idea, but Aurora ended up losing more than $2.6 billion since Peltz joined last year as it failed to catch up to its competitors.

A top line jump that didn’t find its way to bottom line

During the fourth fiscal quarter, The Supreme Cannabis Co. Inc. (OTC: SPRWF) saw its recreational net revenue skyrocket 373% YoY but ended up reporting a  loss of $139 million in the fiscal year ending June 30 due to a ripple effect of closed dispensaries and offices. 

News

The first and only real estate company on the New York Stock Exchange belonging to the regulated U.S. cannabis industry, Innovative Industrial Properties Inc. (NYSE: IIPR), keeps growing. Last week, it revealed it bought a property in Lakeland, Florida, for roughly $19.6 million.

Curaleaf Holdings Inc. (OTC: CURLF) announced it is collaborating with actor and cannabis entrepreneur Jim Belushi to launch a new vape pen.

CBD is also expanding its footprint in pharmaceuticals as CURE Pharmaceutical Holdings (OTC: CURR) agreed to acquire CBD products company Sera Labs Inc. for $20 million.

Expansion – product, market and range of treatment

Miami-based medical cannabis company PharmaCielo (OTC: PCLOF) revealed it is significantly expanding its product portfolio. With a two-year expansion plan, PharmaCielo is constructing a vertically integrated medical marijuana treatment center to extend the range of quality products that are being offered to patients in Florida.

MediPharm Labs Corp. (OTC: MEDIF) revealed a two-year partnership with a Rio de Janeiro, Brazil-based distributor, positioning the company to take a share of the largest medical cannabis market in Latin America.

IM Cannabis Corp. (OTC: IMCNF) launched its medical cannabis brand in the German market via four distributors through which it will be available to every pharmacy in the country that is licensed to distribute narcotics.

Pharmaceuticals plc ( NASDAQ: GWPH) confirmed that TGA authorized the Epidyolex, the first FDA approved CBD medicine for severe epilepsy in children, to treat Lennox-Gastaut syndrome (LGS) or Dravet syndrome.

New entrant

On September 23, CEO Jason Vegotsky and COO Arun Kurichety launched Petalfast. Both founders are former executives of KushCo Holdings Inc. (OTC: KSHB). With the acquisition of A.P. Keaton’s award-winning cannabis marketing business, the Petalfast team combines cannabis experience with spirits industry expertise to deliver unique solutions and growth for cannabis brands, something the industry still hasn’t seen.

Bright outlook

The industry was not immune to pandemic-induced bottlenecks that clogged industry pipelines, sales funnels and supply chains but studies indicate booming revenues that are here to stay. As for companies, brand building is a different deal. It has been successfully done for years in the consumer-packaged goods and foods & beverages but very few have done it in the expanding cannabis space. The opportunities are there but in order to capitalize on them, companies need to patch up their weaknesses first.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

This Week’s Recap

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The market and the economy continue to open, which is probably a result of bottled-up demand for many products and services affected by the pandemic. Maybe the inflation or rising bond yields will trigger the selloff on the market at some moment, but the current Fed’s transitory inflation message has been accepted by many investors. Also, the best way to deal with inflation is to stay with your investments and keep your faith in the market. So, despite the jump of May’s consumer-price index, that did not affect the investors who adopted a different mindset, so all three major averages finished in a positive zone.

The Dow Jones Industrial Average managed to recover from one of the steeper declines, thanks to gains from companies like IBM (NYSE: IBM), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The Nasdaq Composite Index has also risen 49.09 points to 14,069.42. The tech-heavy index continued with the positive run, led by DocuSign (NASDAQ: DOCU), Zoom Video (NASDAQ: ZM), and CrowdStrike (NASDAQ: CRWD).

Tuesday brought us an earnings report from Oracle

Although it was a slim week for the earnings reports, Oracle (NYSE: ORCL) announced its last quarter results, as well as plans and guidance. The results are better than expected, as the achieved revenues were $11.23 billion (compared to the expected $11.04 billion) and the achieved adjusted earnings of $1.54 per share (compared to the expected $1.31). On the other hand, the company revealed its quarterly revenue guidance, which is lower than expected due to the plans to increase investments to support its cloud strategy and keep migrating existing on-premises customers to the cloud. This all led to a share fall of 5%, as many investors are skeptical if Oracle can successfully compete with major “cloud” players like Amazon (NASDAQ: AMZN), Salesforce, or Workday (NASDAQ: WDAY).

Adobe reported impressive results on Thursday

The Wall Street analysts recognized the work-from-home trend and this second digitization era as the main reasons for Adobe’s (NASDAQ: ADBE) sustained growth and therefore a monster quarter. And they were right. The company reported revenues of $3.84 billion, which is an increase of 23% compared year to year. That is also above the Wall Street estimate of $3.73 billion. The digital media business revenues, consisting of Creative Cloud and Document Cloud, grew by 25% compared to the previous year. The adjusted earnings per share were $3.03, which is higher than the estimated $2.81. For the following quarter, the company expects revenues of $3.88 billion and adjusted earnings per share of $3.00.

Conclusion

All these factors taken together, proven by positive index movements and earnings results better than anticipated, support the fact that the economic recovery is firmly underway, and those are very encouraging news.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Several new earnings reports and more management presentations this week

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We might be witnessing the lower volume of quarterly earnings reports this week, but that only means we passed last quarter’s report peak and we are getting ready for the June-quarter earnings season, which will hit us not long after the 4th of July. However, we do not lack many management presentations, which are typical after announcing earnings reports. This week brings us news for future result expectations from more than 30 companies, so let’s try and not miss any important clues. Besides earnings reports, this week is bringing us a total of 9 new IPOs like Marqeta, Inc. (NASDAQ: MQ), TaskUs, Inc. (NASDAQ: TASK), LifeStance Health Group, Inc. (NASDAQ: LFST), monday.com Ltd. (NASDAQ: MNDY), Zeta Global Holdings Corp.(NYSE: ZETA) and Jaws Hurricane Acquisition Corp (NASDAQ: HCNEU).

Monday

Yesterday we saw the first quarter report of fiscal 2022 for Marvell Technology (NASDAQ: MRVL), a Delaware-based company that develops and produces semiconductors and related technology. Marvel Technologies reported new revenues of $832 million, which is an increase of 20% year-to-year. GAAP gross profit margin was 50.2% and non-GAAP gross margin was 64.3%, while GAAP diluted loss per share was $0.13 and non-GAAP diluted income per share was $0.29.

Also, Vail Resorts, Inc. (NYSE: MTN) which owns and operates several premier mountain resorts in Colorado and California, reported fiscal 2021 third-quarter results yesterday. The report showed a net income of $274.6 million which is an increase of 80% compared to the third fiscal quarter of 2020. The reported EBITDA was $462.2 million, which is a significant increase from last year same quarter’s $304.4 million.

Tuesday

Besides earnings reports from Navistar International (NYSE: NAV) and Calavo Growers (NASDAQ: CVGW) on Tuesday, we are also expecting reports from Thor Industries (NYSE: THO), Casey’s General Stores (NASDAQ: CASY), and ABM Industries (NYSE: ABM).

Wednesday

Wednesday is reserved for earnings reports from Brown Forman (NYSE: BF-B), United Natural Foods (NYSE: UNFI), and Restoration Hardware (NYSE: RH). RH, the California-based furnishing company is expected to report earnings of $3.99 per share, which is growth of over 214% compared to the same period last year. Also, GameStop Corp (NYSE: GME), one of the world’s largest video game retailer’s earnings report is expected on Wednesday. The expected loss for the first quarter is $0.68 per share, which is an improvement from the same period last year (-%1.61 per share). In order to accelerate its transformation, the company decided to restructure its board, so it can keep up with industry growth and company expansion in the digital arena.

Thursday

On Thursday, we expect to see reports from National Beverage (NASDAQ: FIZZ), Chewy (NYSE: CHWY), and Dave & Buster’s (NASDAQ: PLAY). Chewy, the Florida-based pet store retailer, is expected to report a quarterly revenue growth of over 125%, compared year over year.

Friday

We are not expecting any major earnings reports on Friday.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

The week may be starting slowly but do not let that mislead you

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The celebration of Memorial Day in the U.S. caused the slower start, but the rest of the week will bring us plenty of news, updates, and earnings reports from companies like Zoom Video Communications (NASDAQ: ZM), Hewlett-Packard Enterprise (NYSE: HPE), Advanced Auto Parts (NYSE: AAP) and Slack Technologies, Inc. (NYSE: WORK). This week will also bring us news from the EV and the IPO worlds, as well as the 2021 Bitcoin conference, one of the biggest cryptocurrency events this year. Before we move to the day-to-day highlights, if you are a small business owner, do not miss today’s deadline to apply for the latest round of the Paycheck Protection Program funding.

Tuesday

This week’s earnings reports will be led by Kirkland’s Inc (NASDAQ: KIRK), and that is due before the market opens. It will be followed by HP’s and Zoom’s earnings reports, after the bell. SoFi Technologies (NYSE: SOFI) is a fintech startup IPO joining the trading world after its SPAC merger on Friday.

 

Wednesday

Before the market opens on Wednesday, we are expecting the earnings reports from Advance Auto Parts and Lands’ End Inc (NASDAQ: LE). The reports will keep coming after the bell as well, so we are keen to see how NetApp Inc (NASDAQ: NTAP), Endeavor Group Holdings (NYSE: EDR), Splunk Inc (NASDAQ: SPLK), and PVH Corp (NYSE: PVH) did in the previous period. Wednesday is also the day when we are expecting the Beige Book, which will give us the latest analysis of the economic conditions in the U.S. as the COVID-19 restrictions reduce.

Thursday

Thursday is expected to be the busiest of the week, when we expect earnings reports from Express Inc (NYSE: EXPR), Asana Inc (NYSE: ASAN), Duluth Holdings Inc (NASDAQ: DLTH), Broadcom Inc (NASDAQ: AVGO), The Toro Company (NYSE: TTC), The Cooper Companies (NYSE: COO), Science Applications International Corporation (NYSE: SAIC), Lululemon Athletica (NASDAQ: LULU), as well as Slack Technologies.

Thursday is a big day for NVIDIA Corporation (NASDAQ: NVDA) also. After reporting the record profits and earnings, highly affected by the company’s revenues from graphic cards for crypto mining, the shareholders will vote on a 4-for-1 stock split. That will increase the number of authorized shares of common stock, and if approved, each shareholder will receive an additional dividend of three additional shares.

Thursday will be also interesting in the automotive world. Kia will start taking reservations for its new EV6 crossover, while Nio Inc (NYSE: NIO), the Chinese automaker, will hold a general meeting so it can increase the diversity of its board.

This day will also be dominated by cryptocurrencies, as the 2021 Bitcoin conference, taking place in Miami, will kick-off.

Friday

The week’s end is reserved for the earnings report from Hooker Furniture Corporation (NASDAQ: HOFT), and that is expected before the opening bell. During the rest of Friday, we will focus on the latest unemployment rates and data.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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