The U.S.-listed shares of CannTrust Holdings Inc. CTST, +10.11% TRST, +12.24%surged 5.4% in premarket trade Tuesday, after the Canada-based cannabis company reported a surprise first-quarter profit, while revenue more than doubled but fell short of expectations. The company reported net income of C$12.8 million ($9.5 million), or 12 cents a share, after earnings of C$11.4 million, or 12 cents a share, in the same period a year ago. The FactSet consensus was for a loss of 5 cents a share. Total revenue rose 115% to C$16.9 million ($12.5 million), which FactSet said was just shy of consensus of C$17.2 million. Medical net revenue rose 57% to C$11.4 million while wholesale net revenue grew 9-fold to C$5.5 million. Total active patient count rose 70% to 68,000 and harvested production increased more than 400% to 9,400 kilograms. Medical dried revenue per gram fell to C$7.33 from C$7.94 while wholesale dried revenue per gram declined to C$4.54 from C$5.47. The company expects 2019 revenue to increase “significantly” over 2018’s results, with growth accelerating in the second quarter. The stock has rallied 18.8% year to date through Monday, while the ETFMG Alternative Harvest ETF MJ, +2.92% has run up 30.4% and the S&P 500SPX, +1.22% has gained 12.2%.
CannTrust Holdings Inc. shares were trading at $6.41 per share on Tuesday morning, up $0.68 (+11.87%). Year-to-date, CTST has gained 32.90%, versus a 14.16% rise in the benchmark S&P 500 index during the same period.
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