Trulieve Cannabis (NYSE:TRLV) Posts Earnings Results, Hits Estimates

Trulieve Cannabis (NYSE:TRLV) announced its quarterly earnings results on Thursday. The company reported $0.09 EPS for the quarter, meeting the consensus estimate of $0.09, Zacks reports. The firm had revenue of $230.20 million for the quarter, compared to analyst estimates of $221.79 million. Trulieve Cannabis had a negative return on equity of 4.24% and a negative net margin of 41.55%.

Here are the key takeaways from Trulieve Cannabis’ conference call:

• Trulieve reported third-quarter revenue of $230 million, up 4% year over year and sequentially, with a 64% gross margin and $89 million in adjusted EBITDA (39% margin). Operating cash flow was $74 million.
• Rescheduling of state-licensed medical cannabis to Schedule III has enabled DEA registration for Trulieve’s medical operations, removal of the 280E tax burden going forward, and its NYSE listing. Management says these changes are improving access to investors and potential business partners.
• Georgia demand is growing faster than the company initially expected: patient enrollment topped 60,000, and Trulieve received approval for two more dispensaries. The company is adding production capacity; Texas could provide another growth opportunity, pending final licensure.
• Trulieve expects fourth-quarter revenue to rise by a low single-digit percentage, with gross margin comparable to recent quarters but some pressure from holiday promotions. It anticipates a reported net loss because of non-cash purchase-accounting adjustments related to its Harvest investment.
• Although the company says 280E will not apply to its Schedule III medical operations going forward, it still carries an uncertain tax position covering 2019 to the present, including more than $102 million in IRS refunds received and related interest. The position remains unresolved.

Trulieve Cannabis Trading Up 5.9%

TRLV traded up $0.64 on Friday, hitting $11.54. 1,550,714 shares of the company’s stock were exchanged, compared to its average volume of 1,272,252. Trulieve Cannabis has a fifty-two week low of $4.62 and a fifty-two week high of $13.28. The company has a quick ratio of 3.98, a current ratio of 5.94 and a debt-to-equity ratio of 0.45. The firm’s 50-day simple moving average is $11.21.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on TRLV shares. Wall Street Zen downgraded shares of Trulieve Cannabis from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Weiss Ratings reissued a “sell (d-)” rating on shares of Trulieve Cannabis in a report on Friday, September 11th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and issued a $15.00 price objective on shares of Trulieve Cannabis in a research report on Monday. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $15.00.

Trulieve Cannabis Company Profile

Trulieve Cannabis Corp. is a vertically integrated cannabis company that cultivates, processes and sells medical and adult-use cannabis products. Its offerings include flower, pre-rolls, concentrates, vaporizers, edibles, tinctures, capsules and topical products, sold through retail dispensaries and other approved channels under brands such as Trulieve, Cultivar Collection, Muse, Roll One and Alchemy.

Founded in 2015, Trulieve initially built its business around Florida’s medical cannabis market and later expanded into additional U.S.