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

Trulieve Cannabis (NYSE:TRLV) posted its earnings results on Thursday. The company reported $0.09 EPS for the quarter, meeting the consensus estimate of $0.09, Zacks reports. The company had revenue of $230.20 million during 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 during trading on Friday, reaching $11.54. The company had a trading volume of 1,550,714 shares, compared to its average volume of 1,272,252. The company has a current ratio of 5.94, a quick ratio of 3.98 and a debt-to-equity ratio of 0.45. Trulieve Cannabis has a 12-month low of $4.62 and a 12-month high of $13.28. The company has a 50-day moving average of $11.21.

Analyst Upgrades and Downgrades

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

About Trulieve Cannabis

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.