Planet 13 Holdings‘ (OTC:PLNH.F) huge stock gain in February has largely evaporated. But the Nevada-based cannabis company is still making investors happy with a year-to-date gain of 14%.
That momentum was on the line as Planet 13 announced its 2020 fourth-quarter and full-year results after the market closed on Monday. Here are the highlights from the company’s Q4 update.
By the numbers
Planet 13 reported revenue in the fourth quarter of $20.1 million. Although this result was 22% higher year over year, it came in below the consensus analysts revenue estimate of $23.1 million.
The cannabis company posted a net loss in the fourth quarter of $2.9 million, or $0.02 per share. In the prior-year period, Planet 13 recorded a net loss of $2.6 million, or $0.02 per share. The average analysts estimate was for the company to break even in the fourth quarter.
Planet 13 generated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $0.3 million in the fourth quarter. This result reflected deterioration from adjusted EBITDA of $2.6 million reported in the prior-year period.
The company ended the fourth quarter with cash, cash equivalents, and short-term investments totaling $79 million, up from $12.8 million as of Dec. 31, 2019.
Behind the numbers
At first glance, you might think that Planet 13’s performance was really disappointing with misses on both the top and bottom lines. However, it’s important to note that only two analysts currently cover the marijuana stock. That makes comparisons to average analyst estimates less meaningful than they’d be if more analysts covered Planet 13.
You can blame the COVID-19 pandemic for the company’s less-than-inspiring Q4 results. Nevada imposed strict limits on how many customers were allowed in the Planet 13 SuperStore in Las Vegas. With that