Ascend Wellness (OTCMKTS:AAWH) Announces Earnings Results, Misses Expectations By $0.02 EPS

Ascend Wellness (OTCMKTS:AAWH) announced its quarterly earnings results on Wednesday. The company reported ($0.15) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.02), Zacks reports. Ascend Wellness had a negative net margin of 23.61% and a negative return on equity of 1,099.51%.

Here are the key takeaways from Ascend Wellness’ conference call:

• Ascend said Q1 revenue and adjusted EBITDA came in ahead of its guidance and broader market expectations, with net revenue of $116.9 million and adjusted EBITDA of $26.3 million.
• Margins improved despite softer sales, with adjusted gross margin up 70 basis points to 46.1%, helped by stronger vertical sales, better product mix, and menu optimization.
• Management pointed to healthy underlying consumer demand, saying transaction volumes were stable overall and that some markets saw stronger traffic; Ohio transaction volumes rose 11.8% quarter over quarter after pricing changes.
• The company highlighted continued progress in its retail expansion, saying it added five stores year to date and expects its footprint to grow from 51 to at least 60 stores by year-end, subject to approvals.
• Ascend said the DOJ’s move to reschedule medical cannabis to Schedule III is a historic step and could eventually support tax relief, better banking access, and even a future uplisting, though the near-term impact appears mainly tax-related and still unclear.

Ascend Wellness Stock Up 3.6%

Shares of AAWH traded up $0.02 during mid-day trading on Wednesday, hitting $0.57. 82,513 shares of the company’s stock were exchanged, compared to its average volume of 115,883. The stock has a market cap of $115.27 million, a price-to-earnings ratio of -0.98 and a beta of 1.22. The firm has a fifty day moving average of $0.50 and a two-hundred day moving average of $0.60. The company has a quick ratio of 1.14, a current ratio of 1.92 and a debt-to-equity ratio of 133.34. Ascend Wellness has a twelve month low of $0.26 and a twelve month high of $1.20.

Wall Street Analysts Forecast Growth

Separately, Zacks Research lowered shares of Ascend Wellness from a “hold” rating to a “strong sell” rating in a report on Thursday, March 26th. One research analyst has rated the stock with a Sell rating, According to MarketBeat, the stock presently has a consensus rating of “Sell”.

About Ascend Wellness

Ascend Wellness Holdings, Inc engages in the cultivation, manufacture, and distribution of cannabis consumer packaged goods in the United States. The company offers flower, pre-rolls, concentrates, vapes, edibles, tinctures, and other cannabis-related products under the Common Goods, SimplyHerb, Ozone, Ozone Reserve, Royale, Tunnel Vision, Miss Grass, Lowell Smokes, Edie Parker, 1906, and AiroPro brands. It also owns, operates, and manages cannabis cultivation facilities and dispensaries. The company sells its products through company-owned retail stores and third-party licensed retail cannabis stores.