SAN FRANCISCO, Oct. 25, 2018 (GLOBE NEWSWIRE) -- Fincom Investment Partners previews Q3 earnings estimates for a company that it believes offers the best value in cannabis/hemp.

Company mentioned: CV Sciences Inc. (CVSI:OTCQB)

CV Sciences Inc.'s Q3/18 earnings are due November 6. Looking into sector sales and speaking with retailers, we believe the CVSI early-mover advantage continues to drive incremental growth. The CBD phenomena grows.

After a blow-out Q2, with Y/Y sales growth over 200%, realistic growth expectations suggest Q3/18 revenues hit $13.3 million, on track with our prior estimates. We believe CV has hit the $50 million annualized sales run rate and look for confirmation in Q3 numbers, consistent with the prior (Q2) 200% Y/Y annual growth rate. We expect 8% growth on a sequential quarter basis.

We also expect continued strength in gross margins; Q3 gross profit should handily beat Q3/17's $4 million. We estimate Q3 at $9.5 mm for a 70% gross margin, another large Y/Y jump.

We wish investors would look deeper at this metric, which, in our opinion, indicates a superior business model. CV Sciences is a value-added manufacturer, not a hemp grower—sort of like Big Liquor—the money's not in farming raw material. Low traditional farming margins and high capital outlay for fancy grow factories, which are not necessary in California, or most of the hemp-growing world, don't make sense to us.

Continue reading this article: Hemp Producer CV Sciences' Q3 Earnings Estimates--Our View

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Frederick Lacy: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: CV Sciences. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company currently has a financial relationship with the following companies mentioned in this article: None.

The full disclosure is provided at the end of the published article: Hemp Producer CV Sciences' Q3 Earnings Estimates--Our View

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