Cannabis stocks have made a return of sorts in the past few months and one of the stocks from the sector that you could look into this morning is that of Acreage Holdings Inc (OTCMKTS:ACRHF).
Market Reaction
On Wednesday, ACRHF stock fell 3.72% at $2.07 with more than 63k shares, compared to its average volume of 84K shares. The stock has moved within a range of $1.9700 – 2.2400 after opening the trade at $1.97.
Earnings Recap
The vertically integrated cannabis firm operates across multiple states in the United States and over the course of the past week, it has seen its stock record gains of as much as 7%. Yesterday, the company was in focus after Acreage announced its financial results for the third fiscal quarter that had ended on September 30, 2021. At this point, it might be a good idea to take a look at some of the highlights from the company’s performance.
The company generated revenues of as much as $48.2 million for the quarter, which reflected a year on year rise of as much as 52% and 9% on a sequential basis. On the other hand, the gross margins for the quarter stood at 49% and that was higher than the 43% that had been generated in the prior year period. Last but certainly not the least, the company also managed to cut down its losses substantially year on year to $12.3 million. In the prior year period, the losses had stood at a staggering $40.5 million.
Key Quote
Peter Caldini, CEO of Acreage Holdings, said: “At the beginning of fiscal 2021, we introduced a refreshed strategy focused on our key priorities, which include delivering improved financial results and generating shareholder value. Our successes throughout 2021 are the culmination of these refocused efforts to drive profitability, strengthen the balance sheet, and accelerate growth in our core markets.”
