Curaleaf (TSE: CURA) (OTC: CURLF), a cannabis retailer, recently reported its Q3-2022 earnings results. CURA’s results beat revenue expectations but missed earnings-per-share (EPS) estimates. Nonetheless, the company has positive cash flow, which can help sustain its growth, going forward. Please note that all figures are in U.S. dollars unless otherwise stated.
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Curaleaf’s revenue rose to $339.73 million (a 7% year-over-year increase and a 1% sequential increase), which beat expectations of $336.76 million. The revenue growth can be attributed to store openings, the company’s Bloom Dispensaries acquisition, product launches, new wholesale partners, and more. Interestingly, Retail revenue increased by 16% while Wholesale revenue decreased by 14%. Notably, though, Curaleaf’s adjusted gross profit margin rose from 46% to 49%.
Additionally, its diluted earnings per share were -$0.07, less than the $0.03 consensus estimate. Nonetheless, the figure is better than last year’s loss of $0.08 per share. Also, the company’s adjusted EBITDA rose 17.8% year-over-year to $84.04 million but decreased 2.5% sequentially. Regarding cash flow from operations for the quarter, it came out to $60 million. This is a solid result, as most weed companies are cash burners. For the first nine months of the year, cash from operations was $71 million.
Is Curaleaf Stock a Buy, According to Analysts?
Turning to Wall Street, CURLF stock comes in as a Strong Buy. This is based on 10 Buys and one Hold assigned over the past three months. The average CURLF stock price target of $8.57 implies 60.2% upside potential.
Conclusion: Curaleaf’s Results Were Mixed but Not Bad
While Curaleaf had mixed results — revenue beat expectations while earnings missed — the overall result wasn’t too bad. The company is expanding its operations while maintaining positive cash flow. That’s not something that many weed companies are capable of doing. Meanwhile, the Strong Buy rating from analysts gives another reason for investors to consider CURLF stock.
