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The company is expected to release its third quarter, fiscal year 2021 earnings report on May 13. ACB has missed consensus earnings estimates in each of the trailing four quarters. As such, analysts have become bearish on its earnings prospects. Given that the company’s revenues have been negatively impacted by Canada’s restriction of retail sales to curbside pickup, its attempts to achieve more robust growth has yet to convince investors.
Also, the budding cannabis industry has become crowded with new operators that are trying to grab market share from established players. Amid this environment, ACB’s failure to attain profitability and strong revenue growth could cause the stock to retreat in the near term.
