High Tide (TSXV:HITI) (NASDAQ:HITI), a retail-focused cannabis company, released its Q2-2023 earnings results after market close today, with both earnings per share and revenue beating analysts’ estimates. The company’s revenue for the quarter was up 46% year-over-year, rising from C$81.0 million in 2022 to a record C$118.1 million, which beat the expectations of C$116.4 million.
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Additionally, earnings per share came in at -C$0.02 vs. estimates of -C$0.05. Adjusted EBITDA also rose significantly to a record of $6.6 million, marking a 174% increase from the same period in 2022 and a 20% sequential improvement.
HITI attributed its solid results to cost-saving measures, especially in reducing general and administrative expenses, which dropped from 7% of revenue in Q2 2022 to 5% in the most recent quarter. Simultaneously, same-store sales rose 30% year-over-year, reflecting consistent growth for the seventh quarter in a row, and the company’s market share outside Quebec rose to 9.5%, up from 9% in the previous quarter.
Raj Grover, President and CEO of High Tide, stated, “We accomplished this by continuing to focus on our business fundamentals…We remain on track towards achieving our communicated goal of generating positive free cash flow by the end of calendar 2023.”
Further, the company aims to open more stores in the second half of 2023 while being selective about potential future M&A opportunities.
Is HITI Stock a Buy, According to Analysts?
Based on just one Buy rating assigned in the past three months, HITI stock comes in as a Moderate Buy. HITI stock’s price target of C$9.94 implies a whopping 478% upside potential.
