Flora Growth Corp (NASDAQ: FLGC) has confirmed the release date for its Q3 2021 earnings results, which will be on Friday, December 31, 2021, after market close.
What to look for
Earnings: Stockearning’s Estimated EPS for the current quarter under review will be a loss of around $0.05 per share. The company reported an EPS loss of $0.07 per share in the last quarter. Historical EPS Performance shows that in the last 12 quarters, the company has neither beat nor missed EPS estimates.
Revenue: When the company reported its earnings for the past quarter, it reported revenues of more than $2 million for the first nine months with a gross profit of 60% relative to revenues of $100,000 a year ago. The company had a cash balance of $19 million as of June 30, 2021, with minimum debt. Flora Growth is guiding for revenue of between $35 million and $45 million for 2022, including revenue for different operating divisions, including Vessel Brand, which it recently acquired, and Cosechemos wholesale cannabis revenues.
Stock movement: FLGC shares have lost 70.9% since the last earnings release. Fascinatingly, FLGC shares have been DOWN once out of the past one quarter. So, the historical price reaction indicates a 100% probability of the share price going DOWN once FLGC reports earnings. According to the Stockearning algorithm, the predicted first-day move is 17%, while the predicted move on the seventh day is 9%.
What analysts are saying
Roth Capital analyst Scott Fortune commenced coverage on Flora Growth with a "Buy" rating and a price target of $10. Fortune believes that the company is "uniquely positioned" as a top low costs cannabis producer through its Colombian cultivation, with emerging global medical cannabis prospects following the recent decree in Columbia permitting flower exports. Additionally, the analyst believes that the regulatory changes in Columbia offer massive growth opportunities for cannabis exportation to Europe and across Latin America.
MKM Partners analyst Bill Kirk raised his price target on the stock from $6 to $11.5 per share and maintained a “Buy” rating on the stock. The analyst cited the company’s 1H results and organic outlook that marked a “sharp acceleration” led by Flora Lab/Flora Beauty business and Kasa Wholefoods. Additionally, when Kirk commenced coverage on the stock, his model didn't include any changes to Colombian legislation or M&A contributions, but the potential offers more upside to the company's guidance which sets the stage for an annual revenue run rate of more than 440 million as Flora Growth ends 2021.
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