New Age Beverages Corp (NASDAQ:NBEV) has been one of the more interesting companies in the cannabis space for quite some time, and it seems that the company just got even more interesting. The company is primarily known for manufacturing CBD infused beverages, and its stock had enjoyed a surge back in 2019 as well.
NBEV stock has soared almost 60% since April and now trading at 41.65. However, the company could well have turned into a coronavirus play for investors considering the moves that have been made by New Age in recent days.
Earnings in Focus
The company has introduced immunity-boosting beverages recently and has been playing up the success of these products. Hence, it has now suddenly become a potential coronavirus play, and it is a promising development considering the sort of gains some stocks have made due to involvements with coronavirus treatment.
The preliminary results for the first three months of 2019 have surpassed expectations. New Age has revealed that Q1 revenues are going to be in the $62 million to $64 million range. That will also reflect a year on year rise in the 6% to 10% range.
The key acquisition of Morinda Holdings back in 2018 could also prove to be a major advantage for the company now, considering the fact that it gives New Age the much-needed access to international distributors. The company has revealed that the sales growth of some of its products in China and North America are responsible for the bump in revenues in the first quarter.
Launch of intermittent fasting drink TeMana Shapa and that of Noni+CBD in Japan have also proven to be key events. However, the key takeaway was the encouraging signs from New Age’s immunity-boosting beverages like ‘Nhanced Cell Defense and Tahitian Noni. The company stated that these products are possibly being consumed as a way to ward off the threat of the coronavirus.
NBEV stock went up 1.23% to $1.65 on Wednesday.