tiprankstipranks
Fire & Flower Revenue Rises 147% in 4Q; Shares Pop 8%
Market News

Fire & Flower Revenue Rises 147% in 4Q; Shares Pop 8%

Fire & Flower Holdings shares jumped 8% in early trading on Tuesday after the cannabis retailer reported strong fourth-quarter and full-year 2020 results.

Fire & Flower Holdings’ (FAF) revenue came in at C$43.2 million for 4Q 2020, compared to C$16.8 million for 4Q 2019. The company said this was the second consecutive quarter of positive adjusted EBITDA of C$1.5 million compared to C$1.2 million of positive adjusted EBITDA in the third quarter of 2020. Net loss for the quarter was C$11.4 million, 49% lower than the net loss of C$22 million last year.

For the full year, revenue was C$128.1 million, an increase of 150% from C$51.1 million in the fiscal year 2019. The company achieved a positive adjusted EBITDA of C$0.02 million and recorded a net loss of C$79 million for the fiscal year 2020.

Fire & Flower’s CEO Trevor Fencott said, “From an operating standpoint, we continued to make significant progress as we grew from 21 stores at the beginning of 2019 to 80 stores today, which includes the recent acquisition of Friendly Stranger. Building on top of our record growth is our recently signed strategic licensing partnership and acquisition option with American Acres, which provides us with an opportunity for considerably greater expansion as it serves as an entry point into the sizable U.S. cannabis market. Financially, fiscal 2020 was a banner year of growth for the company as we increased revenues over 150% year-over-year and ended with positive adjusted EBITDA. We also strengthened our balance sheet through the reduction of debt which provides us with greater financial flexibility to execute on our overall strategy.”

In addition, Fire & Flower applied to list its common shares on the Nasdaq stock exchange. (See Fire & Flower Holdings stock analysis on TipRanks.)

A month ago, Echelon Wealth Partners analyst Andrew Semple reiterated a Buy rating on the stock with a C$1.75 price target (59% upside potential).

Overall, the consensus among Wall Street analysts is a Moderate Buy based on 2 Buys, 0 Holds, and 0 Sells. The average analyst price target of C$1.75 implies an upside potential of approximately 60% from current levels. Shares of FAF have jumped by more than 70% over one year.

Related News:
Canadian National Railway Misses On Revenue In 1Q
CareRx Enters Deal With Rexall To Add 4,200 Beds
Copper Mountain Mining Posts Record Quarterly Production In 1Q; Shares Pop 8%

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles