Harvest Health & Recreation
Harvest Health & Recreation (HRVSF) released its first-quarter earnings results on May 31. It generated revenue of $19.2 million in the quarter, a year-over-year rise of 131%. Its revenue rose 14% sequentially.
Harvest Health & Recreation reported an operational gross profit before biological assets accounting of $7.9 million, or 41% of its revenue. The same metric stood at $4.3 million, or 52% of its revenue, in the first quarter of 2018.
Cresco Labs also reported a fall in its gross profit margins in the first quarter.
Meanwhile, Harvest Health & Recreation reported a loss on the EBITDA and net income fronts in the first quarter. It reported adjusted EBITDA of -$4.7 million in the quarter compared to $1.9 million in the first quarter of 2018. The company reported a net loss of $20 million in the first quarter compared to a net profit of $1.2 million in the first quarter of 2018. Incidentally, Harvest Health & Recreation’s first-quarter net loss exceeded its revenue. It attributed the loss to “planned investments in people and infrastructure to support the company’s growth initiatives and planned expansion.”
Harvest Health & Recreation has received “strong buy” ratings from three analysts, while the remaining three analysts polled by Thomson Reuters on June 3 have given it “buy” or equivalent ratings. The stock has received a mean consensus price target of 19.2 Canadian dollars, which represents a potential upside of 125% over its closing price on June 3. There hasn’t been any major analyst action following Harvest Health & Recreation’s first-quarter earnings release. The company’s stock fell 22.8% in May, but it’s up 19.4% year-to-date.