A Look At Curaleaf Holdings’ Quarterly Numbers

Curaleaf Holdings recently announced its quarterly earnings. The cannabis specialist is a publicly traded company with the symbol of CURLF.  Curaleaf is an OTC stock, meaning it is traded over the counter with limit orders at specific price points as opposed to market orders.  Curaleaf also trades under the symbol of CURA.  Let’s take a look at the company’s quarterly performance to help those interested in cannabis investing obtain a better understanding of the company.

Curaleaf’s Forecasted Numbers

The top analysts have set a 12-motnh price target of $20 for Curaleaf.  The stock is currently trading at $7.60. The company’s fourth quarter results was publicized through a shareholder conference call this evening. Those interested in the company’s quarterly performance are encouraged to listen in to the results by dialing 1-888-317-6003, using the passcode of 161 8049.  

The company’s representatives have indicated the quarterly performance will yield $321 million of EBITDA revenue with the adjusted value at $72 million.  These figures represent a 23% margin.  The consensus is a 24% margin with $323 million EBITDA revenue and $77 million adjusted.  The consensus is less than the original forecast of $327 million EBITDA revenue with $79 million adjusted as noted on the January 20th note.  

The earnings forecast is slightly disappointing as it is on the lower end of EBITDA revenue as well as adjusted EBITDA.  It must be noted Curaleaf’s third quarter earnings release issued this past November predicted the full year revenue for 2021 would be toward the lower range of the guidance originally set at $1.2 billion to $1.3 billion.  The current forecast predicts aggregate sales for the year gone by to be $1.21 billion.

The Outlook For The Year Ahead  

Let’s shift our attention to Curaleaf’s performance in 2022.  Though the year is only 62 days old, the company’s management is willing to provide a fairly detailed outlook for the ensuing quarters.  Aside from the potential results for the upcoming year, Curaleaf’s brass will also provide information pertaining to the possibility of federal reform.  The company’s Executive Chair, Boris Jordan, will provide such information.  Jordan indicated he was bullish for reform at the federal level.  However, those comments were made nearly four months ago.  If Jordan’s prediction comes true, there is the potential for progress on the reform front as early as this spring.  

Cannabis investors who hold a position in Curaleaf or considering a position in the company should also pay close attention to management’s outlook for the legalization of cannabis for adult use in northeastern states.  Company executives are also likely to touch on their strategy for capturing market share in southern states such as Florida as time progresses.  

Progress On The Dispensary Front 

Rewind back to November and the company’s executives predicted ending 2022 with upwards of 60 dispensaries.  Curaleaf had 37 dispensaries in November of 2021.  The company has 44 dispensaries as of the time of this publication.  

A Potential M&A?

Analysts who have crunched the numbers estimate the company has about $170 million in cash that can be implemented in the form of dry powder in the financial quarters ahead.  This cash is available partially as the result of the issuance of nearly $500 million in 8% senior secured five-year notes this past winter.  In other words, Curaleaf is strategically positioned for a successful 20222 and might even consider a potential merger or acquisition in the quarters ahead.

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