Urban-Gro Inc Down 21.76% To $1.42 After Earnings Miss

Thursday, March 28, 2024 - Urban-Gro Inc (UGRO) reported downside earnings and revenues today.

Analyst expectations for Urban-Gro Inc earnings per share (EPS) were at a loss of $0.13 per share, with the company missing those estimates with a reported EPS loss of $0.34 per share, leading to a negative surprise of $0.21 per share (-162%). Urban-Gro Inc's earnings were down 36% year-over-year as the firm reported an EPS loss of $0.25 per share in its year-ago quarter. The negative annual growth shows the Industrials company isn't performing well amid current economic conditions.

Revenues were downbeat at $15 million. That represents a 13.40% decrease in revenues from the year-ago report and is 48.15% lower than consensus estimates set at $28.9 million.

The stock is down 21.76% to $1.42 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Urban-Gro Inc a Bearish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 48. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Urban-gro Inc is a fully integrated architectural, engineering and cultivation systems integration company for commercial cannabis and food-focused Controlled Environment Agriculture (CEA) facilities. With experience in hundreds of CEA facilities spanning millions of square feet across the globe, the firm engineer, design, and integrate complex environmental equipment systems into high-performance facilities. Once operational, urban-gro's gro-care Managed Services Platform leverages the company's expertise to reduce downtime, provide continuity, and drive facility optimization. Operating as a crop-agnostic solutions provider in both food and cannabis CEA sectors, its crop-focused end-to-end approach provides a single point of accountability across all aspects of growing operations.