Shares of CannTrust Holdings (NYSE:TRST) (OTCMKST:CNTTF) jumped Tuesday after the Canadian company reported first-quarter earnings that beat analysts' estimates amid higher production and distribution of its medical and recreational cannabis products.
The stock recently traded up 9% to US$6.25 (C$8.42) a share on heavier-than-average volume.
The company reported net income of C$12.8 million ($9.5 million), or $0.12 a share, compared with C$11.4 million ($8.5 million), or $0.12 cents a share, in the year-ago quarter. The consensus estimate called for earnings of $0.05 a share.
CannTrust, based in Vaughan, Ontario, said revenue more than doubled to a record C$16.9 million ($12.5 million) from C$7.8 million ($5.8 million). The company said 67% of its revenue came through its medical channel and 33% through the recreational channel.
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In addition, the company said active patient count reached 68,000 as of March 31, a 70% increase over the first quarter of 2018. And harvested production increased by more than 400% to over 9,400 kilograms, compared with the prior-year quarter.
CEO Peter Aceto said CannTrust expects to ramp up harvest production going into next year.
“All told, we continue to expect to exit 2020 at a production rate of between 200,000kg to 300,000kg per year,” Aceto said in a statement. “This is a very exciting time for CannTrust and we plan to continue executing on our vision of becoming a global provider of innovative cannabis products and brands."
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