Please ensure Javascript is enabled for purposes of website accessibility

Harvest Health & Recreation Posts a Mixed First Quarter

By Eric Volkman - Updated May 21, 2020 at 8:53AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Only one of the marijuana company's headline numbers topped analysts' estimates.

Harvest Health & Recreation (HRVSF) posted the results from its inaugural quarter of 2020 after market close on Wednesday. 

For the period, the marijuana company's total revenue was $45 million, which was 19% higher than the preceding quarter, and 134% higher on a year-over-year basis. The company's bottom-line result was a $20 million ($0.07 per share) net loss, well narrower than its nearly $89 million fourth-quarter deficit, and matching the year-ago result.

Cannabis flower in a bowl on top of US currency.

Image source: Getty Images.

On average, the few analysts tracking the stock had estimated Harvest would rake in $43 million in revenue and post a net loss of $0.05 per share, according to Yahoo! Finance.

The company's revenue improvement was due in no small part to its increased retail footprint. During the quarter, it added five retail locations, bringing its total dispensary count to 35.

Harvest is currently in the midst of realigning its business strategy. "Our improved financial results during the first quarter demonstrate progress toward our primary goal of returning to profitability through cost reduction measures and investments in core markets Arizona, Florida, Maryland, and Pennsylvania," said CEO Steve White in the earnings release. "In 2020 we have raised additional capital and completed several acquisitions adding strategic assets in core markets while continuing to streamline operations as highlighted by continued improving quarterly trends."

In line with these goals, earlier this month Harvest announced that it reached a deal to sell 13 current and planned dispensaries in California to Hightimes Holding, the parent company of cannabis aficionado magazine High Times.

Harvest's stock did well before the results were unveiled. It closed nearly 4.4% higher on Wednesday. But just after market open Thursday, it was trading sharply lower, down by more than 8%. 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Harvest Health & Recreation Inc. Stock Quote
Harvest Health & Recreation Inc.
HRVSF

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.