Greenlane Holdings Inc. (NASDAQ:GNLN) Stock Takes a Hit After Postings Disappointing Earnings
Greenlane Holdings Inc. (NASDAQ:GNLN) shares lost 13% after the company announced its Q3 2021 results.
Market Stats
On Tuesday, GNLN stock slumped 12.50% at $1.75 with more than 3.50 million shares, compared to its average volume of 1.52 million shares. The stock has moved within a range of $1.7200 – 1.8800 after opening trading at $1.85.
Earnings Review
The company reported a 16% YoY revenue increase to $41.3 million, and it achieved its second-highest sales in its history for Greenlane Brands that grew to $8.4 million, up 26% YoY. Greenlane brand contributed 20.4% of the company’s total revenue in Q3 2021. During the quarter, the company completed KushCo Holdings Inc.’s merger, creating a leading ancillary cannabis sector player. Also, the company signed an agreement to purchase top vaporizer brand DaVinci to expand the Greenlane Brands portfolio and IP pipeline.
CEO Nick Kovacevich said that the third quarter was transformative for the company following the closing of the merger with KuschCo to create a top ancillary cannabis firm. He said the first few months has a merged company has seen a strong start shown by realized revenue and cost-cutting synergies like vendor consolidation. So in the coming months, investors should keep an eye on GNLN.
Key Quote
Nick Kovacevich, CEO of Greenlane Holdings, said: “Q3 was a transformational quarter for Greenlane, with the completion of our merger with KushCo creating the industry’s leading ancillary cannabis company and house of brands. Our first few months as a combined company have been off to a strong start, as demonstrated through several realized revenue and cost saving synergies, including the consolidation of certain vendors and infrastructure and the development of go-to-market cross-selling strategies across each of our respective platforms. We are extremely pleased with the progress we have made on our integration efforts to date, while simultaneously driving meaningful progression in the business. We also generated another strong quarter of sales for our Greenlane Brands, which, despite the normal and expected challenges of closing a merger, still represented the second highest quarterly revenue contribution in Company history.”
Traders Corner
GNLN stock is trading below the 20-Day and 50-Day Moving averages of $1.91 and $2.22 respectively. Moreover, the stock is trading below the 200-Day moving average of $3.79. The stock is down 25% in the past month.
