Geometry Dash APK Hill Climb Racing APK
85.1 F
New York
Friday, June 2, 2023

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

Must read

Blockchain Technologies Ltd (OTCMKTS:HVBTF) Makes A Stunning Move on Blockchain Optimism

The cryptocurrency boom has sustained for many months now and it anything; it is expected to continue in the future.

Bombardier, Inc. (OTCMKTS:BDRBF) Continues to Gain Momentum and Strength

Many stocks have managed to record significant gains in recent months and one that often flies under the radar is Bombardier,...

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...

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

Alibaba Group Holding Limited (OTCMKTS:BABAF) Big Volume with Possible 60% Upside

Alibaba Group Holding Limited (OTCMKTS:  BABAF) is an over the counter stock traded on the OTC Pink markets in the Consumer Discretionary...

Trans Global Group Inc (OTCMKTS:TGGI) Stock In Focus After Operational Updates

The Trans Global Group Inc (OTCMKTS:TGGI) stock may not have been in the news today yet but it...

Why Hycroft Mining (NASDAQ:HYMC) Stock Shot Up 700%

If you are on the hunt for stocks that may have made major gains over the course of the past week, then...

Secure Paymentz releases banking software demo on Github

This is a paid announcement from one of our advertising partners. How to Leverage Your Trading Position by Secure...

Advanced Asset Management Announces New Website Launch

This is a paid announcement from one of our advertising partners. Financial Planner in Grandville, Michigan
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. Affordable best sms verification service