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GrowGeneration Corp. GRWG reported a loss per share of 19 cents in the third quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 11 cents. The company had reported a loss of 12 cents in the third quarter of 2023.
GrowGeneration generated revenues of $50 million in third-quarter 2024, which declined 10.1% year over year due to 25 fewer retail locations. The top line surpassed the consensus estimate of $48.9 million.
Comparable store sales in the quarter improved 12.5% from the prior year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
GRWG’s Margins Fall Y/Y in Q3
The cost of sales declined 0.5% year over year to $39 million in the quarter. The gross profit moved down 32.9% year over year to $11 million. The gross margin was 21.6% in the quarter under review compared with 29.1% in the prior-year quarter. The downside was led by a decline in the Cultivation and Gardening segment’s results and the company’s restructuring activities.
Selling, general and administrative expenses declined 2.4% to $7.4 million in the quarter under review. Total operating expenses fell 5.4% year over year to $23 million in the third quarter of 2024.
Adjusted EBITDA was negative $2.4 million in the quarter compared with the prior-year quarter’s negative $0.9 million.
GrowGeneration’s Q3 Cash Position
At the end of the third quarter of 2024, GRWG had cash and cash equivalents of $27 million compared with $30 million as of the end of 2023. Inventory was $48 million, and prepaid inventory and other current assets were $7.7 million at the quarter end. Total current liabilities, including accounts payable, and accrued payroll and other liabilities, were $24.5 million at the quarter’s end.
GRWG’s 2024 Guidance
The company expects revenues between $190 million and $195 million for 2024.
GrowGeneration Price Performance
In the past year, GRWG shares have lost 20.8% against the industry’s 2.9% growth.
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GRWG’s Zacks Rank
GrowGeneration currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Agricultural Products Stocks in Q3
West Fraser Timber Co. Ltd. WFG incurred a third-quarter 2024 adjusted loss of $1.03 per share, wider than the Zacks Consensus Estimate of a loss of 45 cents. The company posted earnings of $1.81 per share in the year-ago quarter.
WFG generated revenues of $1.43 billion, down 15.7% year over year. The top line missed the Zacks Consensus Estimate of $1.45 billion.
Arcadia Biosciences, Inc. RKDA reported a third-quarter 2024 adjusted loss of 87 cents per share, wider than the Zacks Consensus Estimate of a loss of 77 cents. The company reported earnings of $1.83 per share in the year-ago quarter.
Arcadia Biosciences posted revenues of $1.54 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate of $1 million. This compares to year-ago revenues of $1.6 million.
Bunge Global SA BG reported third-quarter 2024 earnings of $2.29 per share, beating the Zacks Consensus Estimate earnings of $2.18. The company recorded earnings of $2.99 a year ago.
Bunge Global posted revenues of $12.9 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by $12.6. It registered revenues of $14.2 billion in the year-ago quarter.