GrowGeneration Tops Estimates, Raises Full-Year Guidance

TheStreet2021-05-13

Shares of GrowGeneration Corp. (GRWG) -Get Report jumped Wednesday after the company reported first-quarter results ahead of analyst expectations.

The Denver-based company reported first-quarter earnings of 10 cents per share on revenue that jumped 173% year-over-year to $90 million.

Analysts polled by FactSet were expecting earnings of 8 cents per share on revenue of $86.4 million.

"The GrowGen team delivered an exceptionally strong start to the year, with same-store sales up 51%, demonstrating the hard work of the entire team," said CEO Darren Lampert.

As a result of the strong quarter, the company raised its full-year revenue expectations between $450 million and $470 million. In March, the company said it expected revenue between $415 million and $430 million. Analysts are expecting revenue of $426 million.

GrowGeneration shares wererising 4.6% to $38.25 after hours Wednesday.

Same-store sales rose 51% year-over-year and GrowGeneration said it was able to accomplish this growth despite port delays and supply chain interruptions.

The company said it closed nine acquisitions while adding 15 hydroponic retail locations to bring its total store count to 53.

In April, the hydroponic and organic garden chain, often traded as a marijuana company, said it hadacquired Downriver Hydroponics. Terms weren't disclosed.

Last month,GrowGeneration posted record full-year salesand said it expected to rack up additional strong sales in the first quarter.

TheStreet.com’sBrent Kenwell also analyzed Growin February, in light of the recent volatility in cannabis stocks. Many investors have been disappointed with marijuana stocks' meager earnings and have sold in bulk.

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