The share price of GrowGeneration (NASDAQ:GRWG) was growing at a 21% clip as of mid-afternoon trading on Thursday. This followed the release of its latest set of quarterly results after market hours the previous day.
For the third quarter of fiscal 2020, GrowGeneration booked sales of just over $55.0 million — its 11th quarterly all-time high in a row, on the back of a 73% rise in same-store sales to $33.4 million. That top-line figure trounced the $21.8 million in the same period of 2019.
Net income for the hydroponic goods retailer tripled and then some to $3.3 million, or $0.06 per diluted share. This broadly met analyst expectations, while prognosticators were estimating only around $46 million in sales.
Better, GrowGeneration has again raised its guidance. To wit:
|Metric||New Guidance||Previous Guidance|
|Fiscal year 2020 revenue||$185 million to $190 million||$170 million to $175 million|
|Fiscal year 2021 revenue||$280 million to $300 million||$245 million to $260 million|
|Fiscal year 2020 adjusted EBITDA||$19 million to $20 million||$17 million to $18 million|
|Fiscal year 2021 adjusted EBITDA||$34 million to $36 million||$26 million to $28 million|
Note some of the dramatic differences in the two columns. It’s rare for a marijuana company to be so confident, and rarer for one to post a bottom-line profit. Fueled by both organic growth and acquisitions, GrowGeneration very much feels like a company and stock that should continue to soar.