Cannabis stocks have done reasonably well during this recent round of earnings. While much of the focus is on Aurora Cannabis (TSX:ACB)(NYSE:ACB) and its surprising result, investors shouldn’t ignore the progress that Green Thumb Industries (CNSX:GTII) has made. The pot stock released its first-quarter results of 2020 last week, and its numbers were impressive.
Revenue was up 268% from the prior-year period, reaching US$102.6 million in Q1. That was also a 35% improvement from the fourth quarter where Green Thumb generated US$75.8 million in sales. What’s even more impressive is that selling, general, and administrative expenses of US$45.4 million were down from Q4. While it wasn’t a huge decrease at 2.7%, cannabis companies often see their costs grow right along with revenue. It’s a positive sign for Green Thumb investors that the company is going in the right direction.
As a result of the rising sales and stable costs, Green Thumb was able to generate a pre-tax profit of US$9.4 million. That’s a far cry from the US$10.2 million loss that the Chicago-based pot producer incurred in Q4.
The stock rallied on Friday and year to date, shares of Green Thumb were up 1.6% as of the end of the week. But in the past 12 months, the stock is still down 23%.
With some strong numbers and some renewed bullishness in the cannabis industry, now could be a great time to buy shares of Green Thumb. And with the stock overshadowed by Aurora, it could continue to fly under the radar.
