Charlotte’s Web stock tumbles early after earnings, revenue miss

BOULDER — Charlotte’s Web Holdings Inc.’s (TSX: CWEB) (OTCQX: CWBHF) stock price was down nearly 9% in early trading just before noon on Tuesday after the company posted revenues and earnings that failed to meet Wall Street expectations. 

The CBD producer posted $23.4 million in sales for the first quarter of 2021, which was up 9.1% year over year but below Zachs Consensus Estimate of $27 million.

Net losses were $13.9 million on the quarter, or  $0.10 per share, up from a loss of $11.5 million for the same period in 2020. Wall Street analysts expected the company to lose $0.05 per share. 

“Despite reduced retail activity due to the pandemic, our directly comparable B2B retail sales showed year-over-year growth. Our B2B retail sales and velocities further strengthened in March and April as U.S. vaccination programs support reopening of the economy, and our DTC sales continued to grow demonstrating long-term secular strength for our products in the e-commerce channel,” CW CEO Deanie Elsner said in a statement accompanying the company’s earnings report. “We continued to expand our leading market position with quarterly market share gains across all of our channels. Internationally we have made our first moves into Israel and Canada with initial product sales planned for early 2022. We are pleased with our progress and believe that Charlotte’s Web is well positioned to drive continued growth in the U.S. and new growth in key international markets as we expand outside of the U.S.”

© 2021 BizWest Media LLC

BOULDER — Charlotte’s Web Holdings Inc.’s (TSX: CWEB) (OTCQX: CWBHF) stock price was down nearly 9% in early trading just before noon on Tuesday after the company posted revenues and earnings that failed to meet Wall Street expectations. 

The CBD producer posted $23.4 million in sales for the first quarter of 2021, which was up 9.1% year over year but below Zachs Consensus Estimate of $27 million.

Net losses were $13.9 million on the quarter, or  $0.10 per share, up from a loss of $11.5 million for the same period in 2020. Wall Street analysts expected the company to lose $0.05 per share. 

“Despite reduced retail activity due to the pandemic, our directly comparable B2B retail sales showed year-over-year growth. Our B2B retail sales and velocities further strengthened in March and April as U.S. vaccination programs support reopening of the economy, and our DTC sales continued to grow demonstrating long-term secular strength for our products in the e-commerce channel,” CW CEO Deanie Elsner said in a statement accompanying the company’s earnings report. “We continued to expand our leading market position with quarterly market share gains across all of our channels. Internationally we have made our first moves into Israel and Canada with initial product sales planned for early 2022. We are pleased with our progress and believe that Charlotte’s Web is well positioned to drive continued growth in the U.S. and new growth in key international markets as we expand outside of the U.S.”

© 2021 BizWest Media LLC