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Can HITI Stock Get a Boost From Bricks-and-Mortar Sales in Q3 Earnings?
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High Tide (HITI - Free Report) is set to release results for the third quarter of fiscal 2024 on Sept. 16 after market close.
The prominent retail cannabis player posted breakeven earnings per share in the last reported quarter against the Zacks Consensus Estimate of a loss of 1 cent. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 97.92%.
During the third quarter of fiscal 2024, HITI stock declined 16.4% against the industry’s 1.2% rise.
Q3 Estimates for HITI
For the third quarter of fiscal 2024, the Zacks Consensus Estimate for High Tide’s revenues is pegged at $93.3 million, indicating an increase of 0.14% from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s earnings is pegged at a loss of 2 cents per share, which indicates a 33.3% improvement from the year-ago reported figure.
Image Source: Zacks Investment Research
High Tide’s Estimate Revision Trend Ahead of Earnings
Estimates for HITI’s fiscal third-quarter earnings have remained unchanged at a loss of 2 cents per share in the past 60 days.
Let’s briefly examine the company’s performance leading up to this announcement.
Major Factors at Play for HITI
Despite several ongoing issues of insolvencies within the cannabis sector, HITI is consistently showing upward momentum in its sales, banking on robust performance within its core brick-and-mortar segment. Taking the second-quarter results into account, the company's revenues crossed the $500 million mark in the trailing 12 months. As High Tide progresses with the execution of most of its strategic initiatives, primarily the discount club model, we expect the company to once again report robust third-quarter growth within the brick-and-mortar segment.
The company was particularly upbeat about the fast-growing ELITE membership base. According to the company, the value offered to its customers and the resourcefulness and execution of the team have made the discount club model a huge success and the primary reason for HITI’s continued outperformance. This is once again expected to have boosted HITI’s overall sales in the to-be-reported quarter.
While many other cannabis companies are going under the weather, High Tide has accelerated the pace of store growth of late. During the fiscal second quarter, market share in the five provinces in which Canna Cabana operates rose to 10.9% from 10.4% in the first quarter and 9.9% in the second quarter. In the company’s two largest markets, HITI represented 20% market share in Alberta and 10% in Ontario in the fiscal second quarter.
This uptrend might have continued in the fiscal third quarter on the fact that the company opened four new Canna Cabana stores in Alberta and Ontario during this period.
This apart, High Tide is expanding its business through strategic M&As. Earlier, the company noted that M&A transactions could contribute to this significantly and help it surpass the stated target of adding 20 to 30 locations in 2024. In this line, in June, the company announced the acquisition of a retail cannabis store in Mississauga, Ontario. If the acquisition was closed within the fiscal third quarter, it might have contributed significantly to the company’s growth in the third quarter.
Meanwhile, the industrywide trend is concerning for investors. Over the past few months, many industry players, including Shinybud, filed intentions to make bankruptcy proposals, raising uncertainty about the future of 66 combined locations. This might have created difficulties for the company to run its business during the fiscal third quarter. However, the escalating cost of operations associated with store openings may have weighed on the company’s profitability.
What Our Model Suggests for High Tide
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see.
Earnings ESP:High Tide has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
The company is expected to release third-quarter 2024 results soon.
INGN’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 4.08%. The Zacks Consensus Estimate for the company’s third-quarter EPS indicates a surge of 74.1% from the year-ago quarter figure.
TransMedics Group (TMDX - Free Report) has an Earnings ESP of +32.51% and a Zacks Rank #1. The company is expected to release third-quarter 2024 results soon.
TMDX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 287.5%. The Zacks Consensus Estimate for TransMedics’ third-quarter EPS indicates a 325% surge from the year-ago quarter figure.
OrthoPediatrics (KIDS - Free Report) has an Earnings ESP of +12.07% and a Zacks Rank #2. The company is expected to release third-quarter 2024 results soon.
The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.81%. The Zacks Consensus Estimate for KIDS’ 2024 third-quarter revenues suggests an improvement of 34.9% from the year-ago reported figure.
Image: Bigstock
Can HITI Stock Get a Boost From Bricks-and-Mortar Sales in Q3 Earnings?
High Tide (HITI - Free Report) is set to release results for the third quarter of fiscal 2024 on Sept. 16 after market close.
The prominent retail cannabis player posted breakeven earnings per share in the last reported quarter against the Zacks Consensus Estimate of a loss of 1 cent. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 97.92%.
During the third quarter of fiscal 2024, HITI stock declined 16.4% against the industry’s 1.2% rise.
Q3 Estimates for HITI
For the third quarter of fiscal 2024, the Zacks Consensus Estimate for High Tide’s revenues is pegged at $93.3 million, indicating an increase of 0.14% from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s earnings is pegged at a loss of 2 cents per share, which indicates a 33.3% improvement from the year-ago reported figure.
Image Source: Zacks Investment Research
High Tide’s Estimate Revision Trend Ahead of Earnings
Estimates for HITI’s fiscal third-quarter earnings have remained unchanged at a loss of 2 cents per share in the past 60 days.
Let’s briefly examine the company’s performance leading up to this announcement.
Major Factors at Play for HITI
Despite several ongoing issues of insolvencies within the cannabis sector, HITI is consistently showing upward momentum in its sales, banking on robust performance within its core brick-and-mortar segment. Taking the second-quarter results into account, the company's revenues crossed the $500 million mark in the trailing 12 months. As High Tide progresses with the execution of most of its strategic initiatives, primarily the discount club model, we expect the company to once again report robust third-quarter growth within the brick-and-mortar segment.
The company was particularly upbeat about the fast-growing ELITE membership base. According to the company, the value offered to its customers and the resourcefulness and execution of the team have made the discount club model a huge success and the primary reason for HITI’s continued outperformance. This is once again expected to have boosted HITI’s overall sales in the to-be-reported quarter.
While many other cannabis companies are going under the weather, High Tide has accelerated the pace of store growth of late. During the fiscal second quarter, market share in the five provinces in which Canna Cabana operates rose to 10.9% from 10.4% in the first quarter and 9.9% in the second quarter. In the company’s two largest markets, HITI represented 20% market share in Alberta and 10% in Ontario in the fiscal second quarter.
This uptrend might have continued in the fiscal third quarter on the fact that the company opened four new Canna Cabana stores in Alberta and Ontario during this period.
High Tide Inc. Price and EPS Surprise
High Tide Inc. price-eps-surprise | High Tide Inc. Quote
This apart, High Tide is expanding its business through strategic M&As. Earlier, the company noted that M&A transactions could contribute to this significantly and help it surpass the stated target of adding 20 to 30 locations in 2024. In this line, in June, the company announced the acquisition of a retail cannabis store in Mississauga, Ontario. If the acquisition was closed within the fiscal third quarter, it might have contributed significantly to the company’s growth in the third quarter.
Meanwhile, the industrywide trend is concerning for investors. Over the past few months, many industry players, including Shinybud, filed intentions to make bankruptcy proposals, raising uncertainty about the future of 66 combined locations. This might have created difficulties for the company to run its business during the fiscal third quarter. However, the escalating cost of operations associated with store openings may have weighed on the company’s profitability.
What Our Model Suggests for High Tide
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see.
Earnings ESP: High Tide has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
Inogen (INGN - Free Report) has an Earnings ESP of +10.39% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to release third-quarter 2024 results soon.
INGN’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 4.08%. The Zacks Consensus Estimate for the company’s third-quarter EPS indicates a surge of 74.1% from the year-ago quarter figure.
TransMedics Group (TMDX - Free Report) has an Earnings ESP of +32.51% and a Zacks Rank #1. The company is expected to release third-quarter 2024 results soon.
TMDX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 287.5%. The Zacks Consensus Estimate for TransMedics’ third-quarter EPS indicates a 325% surge from the year-ago quarter figure.
OrthoPediatrics (KIDS - Free Report) has an Earnings ESP of +12.07% and a Zacks Rank #2. The company is expected to release third-quarter 2024 results soon.
The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.81%. The Zacks Consensus Estimate for KIDS’ 2024 third-quarter revenues suggests an improvement of 34.9% from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.