Why Are GrowGeneration's Shares Skyrocketing Today?

GrowGeneration Corp. GRWG shares are trading 39.12% at $4.61 per share Tuesday morning. The hydroponic innovator reported its third-quarter Monday after the market closed.

What Happened With GrowGen's Earnings?

The Denver-headquartered company disclosed quarterly net sales of $70.9 million, down by 39% year-over-year.

Its net loss amounted to $7.2 million, compared to net income of $4.0 million in the same period of 2021.

Adjusted EBITDA came in negative reaching $2.6 million, compared to a profit of $10.8 million in the same period last year.

Cash and cash equivalents were $71.1 million on September 30, 2022

Raising 2022 Financial Guidance For Revenue & Adjusted EBITDA

GrowGeneration also raised its revenue guidance for 2022 to somewhere between $270 million to $280 million, compared to previous guidance in the range of $250 million to $270 million.

It also updated guidance on adjusted EBITDA loss, projecting a loss of $10 million to $13 million, which compares to previously provided range of a loss of $12 million to $15 million.

The stock's jump today could well be explained by the buzz of Tuesday's midterm elections, during which five states are about to decide if they will legalize cannabis, which will significantly impact the cannabis industry in general.

Photo: Courtesy of Tim Foster on Unsplash

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