Geometry Dash APK Hill Climb Racing APK
61.1 F
New York
Monday, May 17, 2021

Sundial Growers Inc (NASDAQ:SNDL) Struggles to Sustain At Higher Levels After Earnings

Must read

Grayscale Bitcoin Trust (Btc) (GBTC) Makes Big Move As Bitcoin Goes Wild

Bitcoin, the world’s biggest cryptocurrency by market cap, has been in the middle of a remarkable rally for the past few months...

Voyager Digital Ltd (OTCMKTS:VYGVF) Hits All-Time High on Download News

The remarkable rally enjoyed by several crypto assets over the course of the past months has also resulted in an increased demand...

Solar Integrated Roofing Corp (OTCMKTS:SIRC) Surges Higher On Sector Strength

The Solar Integrated Roofing Corp (OTCMKTS:SIRC) stock has come into sharp focus among investors and on Wednesday, the stock made significant gains...

Greene Concepts (OTCMKTS:INKW) Hits New High: Soars 500% in a 2-Week Span

It is a well-known fact that one of the best ways of going about investing in stocks is...

In recent times, plenty of cannabis stocks have been in action due to rising optimism about the sector and one such stock is that of Sundial Growers Inc (NASDAQ:SNDL).

Key Developments

Last week the company announced its financial results for the fourth quarter. Investors found several positives in the performance from Sundial and in fact, Sundial Growers Inc (NASDAQ:SNDL) even recorded a steady rise over the next five days as well.

Despite that, it is also important to point out that there are some other aspects of the company’s business that might give investors pause and force them to re-evaluate their sentiments with regards to Sundial.

One of the factors that investors need to keep in mind is that the company’s sales did not grow that much in the fourth quarter. Net sales of C$13.9 million in the fourth quarter represented a sequential rise of only 7.8% from the previous quarter.

It is even more alarming since its sales in the third quarter were already down by as much as 54% year on year. However, it should be noted that the company is transitioning into a branded retail model from a wholesale model and that might be a factor in this sort of performance.

On the other hand, the gross margins situation at the company did not improve in the fourth quarter either. The gross margins generated by Sundial before adjustments stood at a negative C$5.1 million. The company stated that lower revenues had one of the major factors behind the poor performance.

However, continued negative margins generation is something that investors are certainly going to keep in mind.

Last but certainly not least, the adjusted EBITDA for the fourth quarter came in at CA$5.6 million. It was higher than the EBITDA loss of C$4.4 million that the company suffered in the previous quarter. All these factors are enough to make investors ponder over the long-term prospects of Sundial.

Disclaimer: We hold no shares of SNDL stock.

Latest article

American Diversified Holdings Corp (OTCMKTS:ADHC) Nears Critical Level

When a stock records significant gains and then crashes and repeats over the course of a few months, then it might be...

Reconnaissance Energy Africa Ltd (OTCMKTS:RECAF) Gathers Further Momentum

If you are currently looking for stocks that may have recorded massive gains within a short period of time, then it might...

Is Tilray Inc (NASDAQ:TLRY) Stock a Good Buy After The Recent Fall?

The cannabis sector may have had a hard time not too long ago but over the course of the past months, the...

Sysorex Inc (OTCMKTS:SYSX) Stock Still Riding Big News

Investors are always drawn to stocks that make a big jump out of nowhere. So it's no surprise that Sysorex Inc (OTCMKTS:SYSX)...

BIGG Digital Assets Inc (OTCMKTS:BBKCF) is Struggling to Regain Momentum

Over the course of the past few months, the continued rally in some of the biggest cryptocurrencies has led to considerable interest...
Şehirler arası nakliyat ve Şehirler arası taşımacılık konusunda en uygun fiyatlar ve en kaliteli hizmet.
ofis taşıma firmaları ve ofis taşıma konusunda en uygun fiyatlar ve en kaliteli hizmet.
SmsVerifyer.com Affordable best sms verification service