2 Cannabis Stocks That Popped On Recent Quarterly Earnings Beats

green plant on blue plastic pot

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The cannabis industry will continue to attract investors as it is a sector poised for massive growth in the upcoming decade. In the not too distant future, the U.S. is likely to decriminalize or even legalize marijuana for recreational use which will provide cannabis producers access to the largest market in the world, making them quality long-term bets.

The recent quarterly results have shown that pot companies are focused on improving their bottom-line while targeting robust growth in sales. These strategies have enabled some companies to report enviable results in Q2, driving share prices higher.

Here, we take a look at Innovative Industrial Properties (IIPR) and Tilray (TLRY). Both stocks have seen an uptick in stock prices post their quarterly results.

IIPR stock has crushed the broader market since IPO

One of the best performing cannabis stocks in the last few years has been Innovative Industrial Properties (IIPR). This company is not a cannabis producer but operates as a marijuana-focused real estate investment trust.

IIPR acquires, owns, and manages properties that are leased out to licensed producers via triple-net-lease agreements. This stock has more than doubled in the last year and has returned over 1,000% to investors since its IPO in late 2016. It has also gained 25% year to date and risen close to 12% in the last month on the back of stellar Q2 results.

In the second quarter of 2021, IIPR reported sales of $48.9 million which were 101% higher compared to revenue of $24.3 million in the year-ago period. Its operating income soared 132% to $32.9 million while net income was up 124% to $29 million year over year in the June quarter.

IIPR reported adjusted earnings per share of $1.17 which indicated a rise of 60% compared to Q2 of 2020. Further, its adjusted funds from operations also doubled to $43 million in Q2. Wall Street forecast IIPR to report revenue of $45.9 million and earnings per share of $1.11 in the second quarter of 2021.

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