Canadian cannabis producer Village Farms beats Q2 sales, EPS estimates on record yields, exports - VFF News | RalliesCanadian cannabis producer Village Farms beats Q2 sales, EPS estimates on record yields, exports
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VFF• Outlook and operating drivers
- Netherlands operations are expected to ramp to full production capacity by the end of Q1 2027.
- Delta 2 expansion in Canada is on track to reach a 40 tonne run rate by mid-2027.
- The company expects to grow its cash balance from positive operating cash flow through the rest of 2026.
Result drivers
- Record harvest yields and greater operating efficiencies at Delta, British Columbia facilities lowered production costs.
- Export sales growth was driven by demand in Europe; international export sales rose 74% year over year and 43% sequentially.
- A favorable sales mix helped drive nine percentage points of cannabis gross margin expansion.
Analyst coverage and valuation
- The current average analyst rating on the shares is "buy", with 4 "strong buy" or "buy" recommendations, no "hold", and no "sell" or ratings.
"strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy".Wall Street's median 12-month price target for Village Farms International Inc is $5.00, about 140.4% above its August 7 closing price of $2.08.The stock recently traded at 9 times the next 12-month earnings, versus a P/E of 12 three months ago.Q2 results beat estimates on higher yields and export sales
- Canadian cannabis grower reported Q2 sales up 7% year over year, beating analyst expectations.
- Q2 adjusted EPS of $0.06 beat analyst expectations.
- The company said it achieved record cannabis harvest yields and record international export sales in the quarter.
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 Sales | Beat | $64 mln | $56.38 mln (3 analysts) |
| Q2 EPS | Beat | $0.06 | $0.02 (3 analysts) |
| Q2 Net Income | | $7.10 mln | |
- Company press release: ID:nGNX2V724G
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