Ascend Wellness (OTCMKTS:AAWH) Announces Earnings Results

Ascend Wellness (OTCMKTS:AAWH) released its quarterly earnings data on Wednesday. The company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.02), Zacks reports. Ascend Wellness had a negative return on equity of 1,099.51% and a negative net margin of 26.24%.

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 Trading Down 11.3%

Shares of Ascend Wellness stock traded down $0.06 on Friday, hitting $0.50. 146,014 shares of the company’s stock traded hands, compared to its average volume of 115,728. The company has a market capitalization of $101.98 million, a price-to-earnings ratio of -0.79 and a beta of 1.22. The company has a fifty day moving average of $0.51 and a two-hundred day moving average of $0.59. The company has a debt-to-equity ratio of 133.34, a current ratio of 1.92 and a quick ratio of 1.14. Ascend Wellness has a one year low of $0.26 and a one year high of $1.20.

Analysts Set New Price Targets

Separately, Zacks Research raised shares of Ascend Wellness from a “strong sell” rating to a “hold” rating in a report on Tuesday. One research analyst has rated the stock with a Hold rating, Based on data from MarketBeat, Ascend Wellness currently has an average rating of “Hold”.

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.