The once-hot cannabis stock, Innovative Industrial Properties (NYSE: IIPR) went up in flames over the last year. Its share price plummeted 56% after a pending lawsuit, default from a major tenant, and general market volatility made investors and Wall Street worried about the future of the company.

Its latest third-quarter earnings far exceed analysts' expectations and as a result, pushed share prices up over 20% over the past month. Now, investors are rightly wondering, was Wall Street wrong about the future of this company, or is trouble still ahead? Let's take a closer look to see.

In the third quarter of 2022, Innovative Industrial Properties grew its revenues by 32% while increasing its adjusted funds from operation (AFFO), a metric that works similarly to earnings per share, by 24% since last year. This rate of growth was slightly slower than previous quarters, but still fantastic by all means. Its AFFO and revenues beat analysts' estimates by a notable margin.

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Source Fool.com