Canada's TerrAscend Q3 revenue beats estimates driven by retail, wholesale growth in Pennsylvania

Overview

• Canada cannabis operator's Q3 revenue rose 4.8% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q3 rose slightly from prior year

• Company renewed share buyback program, authorizing up to $10 mln in repurchases

Outlook

• Company says it remains focused on driving top-tier adjusted EBITDA margins

• TerrAscend is evaluating additional acquisition opportunities to support growth

• Company plans to continue retail expansion in New Jersey

Result Drivers

• PENNSYLVANIA GROWTH - Co said revenue growth was primarily driven by strong retail and wholesale growth in Pennsylvania

• NEW JERSEY ACQUISITION - Co said acquisition of Aunt Mary's dispensary in New Jersey added revenue and was immediately accretive to EBITDA and cash flow

• NEW JERSEY MARKET SHARE - Co said it maintained a leading position in New Jersey, gaining in sales and market share across key product categories

Company press release: ID:nGNX1B5z5p

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the drug retailers peer group is "buy"

• Wall Street's median 12-month price target for Terrascend Corp is C$2.00, about 177.8% above its November 4 closing price of C$0.72

Reuters Recommended Reads

• Nov 3 - Curaleaf Q3 revenue rises 11% on international segment growth

• Nov 5 - Canada's Cronos Q3 revenue up 75% on cannabis flower demand in Israel, Germany

• Nov 5 - Trulieve Cannabis Q3 revenue falls 20% yr/yr

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)