CWBHF - Charlotte's Web lowered to Hold at Benchmark on disappointing earnings

Charlotte's Web Holdings (OTCQX:CWBHF) is trading sharply lower on Wednesday after The Benchmark Company downgraded the maker of hemp-based cannabidiol (CBD) products to Hold from Buy, citing its 1Q 2022 results. Charlotte's Web (OTCQX:CWBHF) “delivered yet another disappointing F1Q22 print,” the analyst Mike Hickey wrote, noting that the company’s revenue for the quarter dropped ~17% YoY to $19.5 million amid numerous difficulties. The analyst attributes the decline to poor traffic at the online store, wildfire in Colorado leading to closure of facilities and the consumer shift to cheaper CBD versions, mainly gummies and topical products. Notably, Hickey cites a sharp increase in AEBITDA loss and a significant drop in gross margin during the quarter, mainly driven by changes to product and channel mix, lower traffic and supply constraints. The firm downgrades the stock until there is more clarity over regulatory and commercial prospects in the CBD space. Benchmark does not issue

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Charlotte's Web lowered to Hold at Benchmark on “disappointing” earnings