GrowGeneration Q2 earnings beat by $0.01, revenue tops estimates
Hydroponic retailer posts adjusted profit of $0.12 per share, beating consensus by a penny as sales rise 15% year-over-year.
GrowGeneration Corp. reported second-quarter earnings that exceeded Wall Street estimates, with adjusted profit of $0.12 per share compared with a forecast of $0.11.
Revenue for the period totaled $102.3 million, up 15% from $88.9 million in the same quarter last year and ahead of the $98.5 million consensus estimate compiled by Refinitiv. The company attributed the growth to increased demand for hydroponic and organic gardening supplies, as well as expansion in its retail footprint.
Gross margin expanded to 34.2% from 32.5% in Q2 2023, reflecting improved operational efficiency and pricing power. Operating income rose 22% to $12.1 million, while net income increased to $8.7 million from $7.2 million a year earlier.
CEO Darren Birnie highlighted the company’s ongoing store rollout strategy, noting that GrowGeneration opened six new locations in the quarter, bringing its total to 220 stores across 28 states. The retailer has prioritized markets with strong organic gardening trends and regulatory support for cannabis-adjacent products.
Shares of GrowGeneration were up 3.5% in premarket trading following the results, extending gains after the company reaffirmed its full-year revenue guidance of $400 million to $420 million, though it maintained a cautious outlook on gross margin compression due to input cost pressures.
Analysts at B. Riley Securities reiterated a neutral rating on the stock, citing valuation concerns despite the earnings beat.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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