Canopy Growth’s stock soars after narrower-than-expected loss, revenue beat

The U.S.-listed shares of Canopy Growth Corp. rocketed 16% in premarket trading Friday, after the Canada-based cannabis company reported a narrower-than-expected fiscal third-quarter loss and revenue that rose above forecasts, amid strength in business-to-consumer sales. The company reported a net loss of C$124.2 million ($93.8 million), or 35 cents a share, after net income of C$74.9 million, or a loss of 38 cents on a per-share basis. That beat the FactSet consensus for a loss of 52 cents a share. Net revenue rose 49% to C$123.76 million ($93.46 million), above the FactSet consensus of C$105.0 million. Recreational business-to-business cannabis sales fell 11% to C$53.5 million. as a 42% increase in dry cannabis sales was offset by an 86% drop in oil and softgels. Recreational business-to-consumer cannabis sales increased 32% to C$15.2 million, as dry cannabis sales grew 24% and oil and softgels jumped 183%. Canadian medical cannabis sales fell 7% to C$14.8 million and international medical sales rose nearly 7-fold (up 593%) to C$18.7 million. Gross margin was 34% while free cash flow was negative C$359.6 million. The stock has run up 23% over the past three months through Thursday while the ETFMG Alternative Harvest ETF has lost 7.9% and the S&P 500 has gained 9.0%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Author: | Source

This article does not constitute investment advice. We are not affiliated or responsible for content hosted on 3rd-party sites in any way.

Click here for great deals & savings!