Charlotte’s Web Holdings (TSX:CWEB) releases its year-end and fourth-quarter results on March 25, before the markets open. It’s a big event for the company’s shareholders as Charlotte’s Web last released its quarterly results on Nov. 12, 2020. Sales in Q3 totaled CA$25.2 million and rebounded strongly from a disappointing Q2 where revenue of $21.6
million was down from the previous year.
The company has had mixed results amid the pandemic as online sales have gotten a boost but in-store sales have struggled. And although its share price has risen more than 50% over the past year, that has paled in comparison with the Horizons Marijuana Life Sciences ETF, which is up nearly 150% during the same time frame.
Inconsistent growth along with a disappointing bottom line that has been in the red in each of the past four quarters has made this an undesirable stock to hold for many investors, especially with many high-growth pot stocks out there to choose from.
But the company has been making moves of late to try and bolster its business and its growth opportunities, including the acquisition of Abacus Health, which it completed last year.
A few months ago, in December 2020, it entered into a strategic alliance with InterCure, giving it a presence in Israel. And it has also announced a deal to purchase Stanley Brothers USA Holdings Inc., which would expand its presence into THC products. It will complete the deal once the U.S. legalizes marijuana.
While those developments are encouraging, investors are still going to want to see some good organic growth this quarter, otherwise another sell-off could be on the way for the stock.