The cannabis industry player, TerrAscend Corp., has revised its full-year financial guidance for 2023 upwards on Friday. The company now expects a minimum net revenue of $317 million and an adjusted EBITDA of $63 million, marking a year-on-year growth of 28% and 62% respectively. These figures reflect a notable increase from the previous estimates of $305 million and $58 million.
According to InvestingPro data, TerrAscend Corp’s market cap is currently at 674.85M USD and the company’s revenue growth for the last twelve months (LTM2023.Q2) is an impressive 42.19%. This aligns well with the company’s optimistic revenue projection. In addition, the company’s gross profit for the last twelve months stands at 126.43M USD, with a gross profit margin of 45.68%.
The firm, led by industry veterans including Jason Wild, Ziad Ghanem, Keith Stauffer, Lynn Gefen, Chantelle Elsner, Mary Turon, and BJ Carretta, also anticipates a gross margin exceeding 50%. In addition to this, TerrAscend projects positive free cash flow from operations during the second half of the year.
An InvestingPro Tip worth noting here is that the company’s revenue growth has been accelerating and analysts anticipate sales growth in the current year. This suggests a positive trend that could potentially lead to a continued upward trajectory for TerrAscend Corp.
Despite the upward revision in its financial outlook, TerrAscend’s stock experienced a slight dip of 0.81%, closing at $1.84 per share on Friday. InvestingPro data shows that the company’s 1-week price total return was -1.18%, but the 1-year total return was a more promising 21.26%.
Jason Wild, the Executive Chairman of TerrAscend, expressed strong confidence in these revised figures. To provide further insights into the company’s strategic updates and elaborate on growth targets, an Investor Day is planned at the Toronto Stock Exchange today. The event will feature presentations by its top executives and panel discussions moderated by CNBC’s Tim Seymour.
The CEO of Wana Brands, Nancy Whiteman, is set to participate in discussions focusing on building strong partnerships. The move is seen as part of TerrAscend’s broader strategy to strengthen its position within the competitive cannabis industry.
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