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GrowGeneration (GRWG) Buys Stores in Alaska to Boost Portfolio
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GrowGeneration Corp. (GRWG - Free Report) announced that it acquired Alaska’s largest indoor/outdoor garden center, Southside Garden Supply. Under the agreement, the company acquired two existing store locations in the state. This move officially expands the number of states that GRWG operates in to 18. It is also the second state that the company has made its foray into this year.
The deal expands GrowGeneration’s overall store portfolio to better serve commercial and home-grow consumers. Located in Southern Alaska, Southside Garden Supply has supplied the growing Alaskan market for many years. It is well-known for high-quality product options and exceptional customer service. GrowGeneration is well-set to gain from this, and further provide the same high-quality services to the local and nearby rising markets.
The acquisition of stores is in line with the company's strategic focus to grow its presence tgorugh acquisitions. GrowGeneration intends to continue investing its capital strategically for future growth.
In the first quarter of 2023, GRWG reported a loss per share of 10 cents, narrower than the Zacks Consensus Estimate of a loss of 11 cents per share. The company had reported a loss per share of 9 cents in the first quarter of 2022.
GrowGeneration generated revenues of $56.8 million in the March-end quarter, which declined 30.5% year over year. The results reflect the ongoing weakness in the cannabis industry. The top line surpassed the Zacks Consensus Estimate of $55.9 million. Comparable store sales in the quarter slumped 36.6% from the prior year at its 55 retail locations and e-commerce operations.
The company expects revenues between $250 million and $270 million in 2023. Full-year adjusted EBITDA is expected between negative $4 million and positive $1 million.
Price Performance
In the past year, GrowGeneration’s shares have lost 14.7% compared with the industry’s fall of 17.6%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
GrowGeneration currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for AngloGold Ashanti’s earnings per share is pegged at $1.94 for 2023. Earnings estimates have been revised 22% upward in the past 60 days. The company has gained 33.4% in a year.
The Zacks Consensus Estimate for Gold Fields’ fiscal 2023 earnings per share is pegged at $1.01. Earnings estimates have moved 6.3% north in the past 60 days. Its shares have gained 27.9% in the past year.
The Zacks Consensus Estimate for Alamos Gold’s earnings per share is pegged at 47 cents for 2023. Earnings estimates have been revised 14.6% upward in the past 60 days. AGI has gained 65.9% in a year.
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GrowGeneration (GRWG) Buys Stores in Alaska to Boost Portfolio
GrowGeneration Corp. (GRWG - Free Report) announced that it acquired Alaska’s largest indoor/outdoor garden center, Southside Garden Supply. Under the agreement, the company acquired two existing store locations in the state. This move officially expands the number of states that GRWG operates in to 18. It is also the second state that the company has made its foray into this year.
The deal expands GrowGeneration’s overall store portfolio to better serve commercial and home-grow consumers. Located in Southern Alaska, Southside Garden Supply has supplied the growing Alaskan market for many years. It is well-known for high-quality product options and exceptional customer service. GrowGeneration is well-set to gain from this, and further provide the same high-quality services to the local and nearby rising markets.
The acquisition of stores is in line with the company's strategic focus to grow its presence tgorugh acquisitions. GrowGeneration intends to continue investing its capital strategically for future growth.
In the first quarter of 2023, GRWG reported a loss per share of 10 cents, narrower than the Zacks Consensus Estimate of a loss of 11 cents per share. The company had reported a loss per share of 9 cents in the first quarter of 2022.
GrowGeneration generated revenues of $56.8 million in the March-end quarter, which declined 30.5% year over year. The results reflect the ongoing weakness in the cannabis industry. The top line surpassed the Zacks Consensus Estimate of $55.9 million. Comparable store sales in the quarter slumped 36.6% from the prior year at its 55 retail locations and e-commerce operations.
The company expects revenues between $250 million and $270 million in 2023. Full-year adjusted EBITDA is expected between negative $4 million and positive $1 million.
Price Performance
In the past year, GrowGeneration’s shares have lost 14.7% compared with the industry’s fall of 17.6%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
GrowGeneration currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are AngloGold Ashanti (AU - Free Report) , Gold Fields Limited (GFI - Free Report) , and Alamos Gold Inc. (AGI - Free Report) . AU and GFI currently flaunt a Zacks Rank #1 (Strong Buy), and AGI carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AngloGold Ashanti’s earnings per share is pegged at $1.94 for 2023. Earnings estimates have been revised 22% upward in the past 60 days. The company has gained 33.4% in a year.
The Zacks Consensus Estimate for Gold Fields’ fiscal 2023 earnings per share is pegged at $1.01. Earnings estimates have moved 6.3% north in the past 60 days. Its shares have gained 27.9% in the past year.
The Zacks Consensus Estimate for Alamos Gold’s earnings per share is pegged at 47 cents for 2023. Earnings estimates have been revised 14.6% upward in the past 60 days. AGI has gained 65.9% in a year.