Trulieve Cannabis (NYSE:TRLV) Releases Quarterly Earnings Results, Hits Expectations

by · The Cerbat Gem

Trulieve Cannabis (NYSE:TRLV – Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.09 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.09, Zacks reports. Trulieve Cannabis had a negative net margin of 41.55% and a negative return on equity of 4.24%.

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 Stock Down 5.6%

Shares of TRLV stock traded down $0.65 during trading hours on Thursday, reaching $10.95. 1,493,260 shares of the company’s stock were exchanged, compared to its average volume of 1,293,669. Trulieve Cannabis has a fifty-two week low of $4.62 and a fifty-two week high of $13.28. The business’s fifty day simple moving average is $11.20. The company has a quick ratio of 3.98, a current ratio of 5.94 and a debt-to-equity ratio of 0.45.

Wall Street Analysts Forecast Growth

TRLV has been the topic of several recent analyst reports. Cantor Fitzgerald reiterated an “overweight” rating and issued a $15.00 target price on shares of Trulieve Cannabis in a report on Monday. Wall Street Zen cut shares of Trulieve Cannabis from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Trulieve Cannabis in a research report on Friday, September 11th. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $15.00.

Get Our Latest Stock Report on Trulieve Cannabis

About Trulieve Cannabis

(Get Free Report)

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.

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