GRWG - GrowGeneration more than doubles quarterly revenue; guidance lags estimates

GrowGeneration (NASDAQ:GRWG) is trading ~9.6% lower in the pre-market after the company reported lower-than-expected earnings for Q3 2021. However, with ~111% YoY growth, the quarterly revenue at $116.0M beat the consensus as same-store sales increased ~16% YoY. While gross profit margin widened to ~29% from ~27% in the previous year’s quarter, the net income grew only ~21% YoY to $4.0M amid a ~174% YoY rise in SG&A expenses that reached ~$11.0M. Currently, the U.S. cannabis player has 62 retail locations, and in 2021, its online marketplace is set to generate up to $35M of revenue, CEO Darren Lampert said. For the full year, the company expects its revenue and adj. EBITDA to reach $435M – $440M and $41M – $43M. The consensus for GrowGeneration (GRWG) indicates $447.4M in revenue for 2021.

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GrowGeneration more than doubles quarterly revenue; guidance lags estimates