Why Sundial Growers Stock Dropped Friday
Highly watched Canadian cannabis company Sundial Growers (NASDAQ: SNDL) reported earnings after the bell last night. Investors hoping for any big positive development were unimpressed, and after dropping 10% early on Friday, Sundial shares are still down more than 7% as of 12:50 p.m. EDT today.
Sundial spent much of last year restructuring by raising capital and reorganizing into a two-pillar business heavily reliant on acquisitions. In doing so, the company diluted existing shareholders by increasing its share count by more than 1 billion shares, or almost 1,500%, from a year ago.
Yesterday's financial update didn't provide the momentum shareholders were looking for. In fact, Sundial said its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at a loss in the second quarter, which ended June 30. That comes after it reported its first positive quarter ever for that metric in the first quarter of 2021.
Source Fool.com
