We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GrowGeneration (GRWG) Q3 Earnings Lag Estimates, Revenues Up
Read MoreHide Full Article
GrowGeneration Corp. (GRWG - Free Report) reported third-quarter 2021 earnings per share of 7 cents, which missed the Zacks Consensus Estimate of 9 cents per share. The bottom line improved 17% year over year.
GrowGeneration generated record revenues of $116 million in third-quarter 2021, which surged 111% year over year. The top line surpassed the Zacks Consensus Estimate of $115 million. Comparable Store sales in the quarter rose 16% from the prior-year quarter’s levels.
E-commerce revenues, including Agron revenues, in the quarter were $10.5 million compared with $3.9 million in the last-year quarter. Private label and proprietary products contributed around 8.7% to overall sales in the third quarter compared with 2.1% in the prior-year quarter.
Store operating costs were $15 million compared with $5 million witnessed in the prior-year quarter. Gross profit soared 127% year over year to $34 million, driven by higher revenues. Gross profit margin was 29.4% in the third quarter, up 290 basis points year over year. Adjusted EBITDA was $10.8 million in the reported quarter compared with the prior-year quarter’s tally of $6.6 million. Adjusted EBITDA margin was 9.3% compared with 12% in the year-ago quarter.
Financial Performance
At the end of the third quarter, GrowGeneration had cash and cash equivalents of $63 million and $30 million of marketable securities that are mature and available for sale, if needed. Long-term debt was $92 million as of Sep 30, 2021, down from $158 million as of Dec 31, 2020.
2021 Guidance
The company now expects revenue guidance for 2021 in between $435 and $440 million. Full-year adjusted EBITDA guidance has been updated in the range of $41-$43 million.
GrowGeneration’s online marketplace, including Agron is on track to reach $35 million of revenues for the current year. The company opened two locations in Los Angeles and expects to open 15 to 20 locations in the next year.
Price Performance
In the past year, GrowGeneration’s shares have lost 11.5% as against the industry’s rally of 45%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
GrowGeneration currently carries a Zacks Rank #4 (Sell).
Olin’s third-quarter 2021 adjusted earnings beat the Zacks Consensus Estimate, while revenues missed the same. It has an expected earnings growth rate of around 740% for the current fiscal year. The Zacks Consensus Estimate for the current-year earnings has been revised 20.5% upward in the past 60 days.
Olin’s shares have surged 229% in the past year. The company has a long-term earnings growth of 56%.
Nucor’s third-quarter adjusted earnings missed the Zacks Consensus Estimate, while sales beat the same. It has a trailing four-quarter earnings surprise of 2.74%, on average.
Nucor has a projected earnings growth rate of around 583% for 2021. The Zacks Consensus Estimate for current-year earnings has been revised upward by 18.1% in the past 60 days. The company’s shares have soared 128% in a year.
Bunge’s third-quarter 2021 earnings and sales beat the respective Zacks Consensus Estimates. It has a trailing four-quarter earnings surprise of 105.7%, on average. Bunge has an estimated earnings growth rate of around 45% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 36%
Bunge’s shares have appreciated 60% in the past year. It has a long-term earnings growth of 12.6%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
GrowGeneration (GRWG) Q3 Earnings Lag Estimates, Revenues Up
GrowGeneration Corp. (GRWG - Free Report) reported third-quarter 2021 earnings per share of 7 cents, which missed the Zacks Consensus Estimate of 9 cents per share. The bottom line improved 17% year over year.
GrowGeneration generated record revenues of $116 million in third-quarter 2021, which surged 111% year over year. The top line surpassed the Zacks Consensus Estimate of $115 million. Comparable Store sales in the quarter rose 16% from the prior-year quarter’s levels.
E-commerce revenues, including Agron revenues, in the quarter were $10.5 million compared with $3.9 million in the last-year quarter. Private label and proprietary products contributed around 8.7% to overall sales in the third quarter compared with 2.1% in the prior-year quarter.
Store operating costs were $15 million compared with $5 million witnessed in the prior-year quarter. Gross profit soared 127% year over year to $34 million, driven by higher revenues. Gross profit margin was 29.4% in the third quarter, up 290 basis points year over year. Adjusted EBITDA was $10.8 million in the reported quarter compared with the prior-year quarter’s tally of $6.6 million. Adjusted EBITDA margin was 9.3% compared with 12% in the year-ago quarter.
Financial Performance
At the end of the third quarter, GrowGeneration had cash and cash equivalents of $63 million and $30 million of marketable securities that are mature and available for sale, if needed. Long-term debt was $92 million as of Sep 30, 2021, down from $158 million as of Dec 31, 2020.
2021 Guidance
The company now expects revenue guidance for 2021 in between $435 and $440 million. Full-year adjusted EBITDA guidance has been updated in the range of $41-$43 million.
GrowGeneration’s online marketplace, including Agron is on track to reach $35 million of revenues for the current year. The company opened two locations in Los Angeles and expects to open 15 to 20 locations in the next year.
Price Performance
In the past year, GrowGeneration’s shares have lost 11.5% as against the industry’s rally of 45%.
Zacks Rank & Stocks to Consider
GrowGeneration currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Olin Corporation (OLN - Free Report) , Nucor Corporation (NUE - Free Report) and Bunge Limited (BG - Free Report) . All of these stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin’s third-quarter 2021 adjusted earnings beat the Zacks Consensus Estimate, while revenues missed the same. It has an expected earnings growth rate of around 740% for the current fiscal year. The Zacks Consensus Estimate for the current-year earnings has been revised 20.5% upward in the past 60 days.
Olin’s shares have surged 229% in the past year. The company has a long-term earnings growth of 56%.
Nucor’s third-quarter adjusted earnings missed the Zacks Consensus Estimate, while sales beat the same. It has a trailing four-quarter earnings surprise of 2.74%, on average.
Nucor has a projected earnings growth rate of around 583% for 2021. The Zacks Consensus Estimate for current-year earnings has been revised upward by 18.1% in the past 60 days. The company’s shares have soared 128% in a year.
Bunge’s third-quarter 2021 earnings and sales beat the respective Zacks Consensus Estimates. It has a trailing four-quarter earnings surprise of 105.7%, on average. Bunge has an estimated earnings growth rate of around 45% for the current year. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 36%
Bunge’s shares have appreciated 60% in the past year. It has a long-term earnings growth of 12.6%.