Harvest Health & Recreation (OTC:HRVSF) had a good day on the stock exchange Tuesday. The happy feeling continued after the company released its latest quarterly results following market close.
For its third quarter of fiscal 2020, the marijuana company took in revenue of $61.6 million — 11% higher than in the previous quarter, and an 86% improvement on a year-over-year basis. On the bottom line, Harvest Health managed to trim its net loss to $2.1 million ($0.01 per share) from the previous quarter’s $18.3 million, and from the Q3 2019 result of $39.1 million.
Both headline numbers came in comfortably above average analyst estimates. Prognosticators had collectively expected revenue of $59.3 million and a per-share loss of $0.06.
The company’s top line was helped by the opening of two new marijuana dispensaries, one in its home state of Arizona and the other in Pennsylvania.
“Our third-quarter results demonstrate further progress toward our primary goal of returning to profitability through revenue growth, cost controls, and investments in our core markets of Arizona, Florida, Maryland, and Pennsylvania,” CEO Steve White said.
“We are focused on preparing for recreational cannabis in Arizona in 2021 and continuing to build on this positive momentum as we execute on our plan,” he added.
Along with voters in four other states, Arizonans opted on Election Day to legalize recreational marijuana. The consumption and sale of medical product had already been sanctioned.
On the back of its revenue and bottom-line improvements, as well as that Arizona vote, Harvest raised its 2020 revenue guidance. The company now expects to take in more than $225 million, up from the previous forecast of $215 million to $220 million. It did not provide any profitability estimates.
Harvest Health had a fine Tuesday overall, closing more than 7% higher, in contrast to the decline of the S&P 500 index.