Harvest Health & Recreation (HRVSF +0.00%) 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.
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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%.
