The U.S.-listed shares of Canopy Growth Corp. dropped 2.5% in premarket trading Thursday, after the Canada-based cannabis company reported a wider-than-expected fiscal second-quarter loss and revenue that came up short of forecasts. The net loss for the quarter to Sept. 30 widened to C$374.6 million ($282.4 million), or C$1.08 a share, from C$330.6 million, or C$1.52 a share, in the year-ago period. The FactSet consensus for net losses per share was C41 cents. Net revenue more than tripled to C$76.6 million ($57.7 million) from C$23.3 million, but was well below the FactSet consensus of C$90.6 million. Kilograms harvested of 40,570 was up from 15,217 a year ago but down from 40,960 in the sequential first quarter. Recreational business-to-business dry cannabis sales was 7,497 kilograms and recreational business-to-consumer dry cannabis sales were 1,064 kilograms--there were no recreational sales a year ago--while medical dry cannabis sales fell to 998 kilograms from 1,698 kilograms. "The last two quarters have been challenging for the Canadian cannabis sector as provinces have reduced purchases to lower inventory levels, retail store openings have fallen short of expectations, and Cannabis 2.0 products are yet to come to market," said Chief Executive Mark Zekulin. He said he believes the challenges are "a short-term headwind in what is a brand new industry." The stock has tumbled 31.2% year to date through Wednesday, while the ETFMG Alternative Harvest ETF has dropped 27.8% and the S&P 500 has climbed 23.4%. Read More...
The U.S.-listed shares of Canopy Growth Corp. dropped 2.5% in premarket trading Thursday, after the Canada-based cannabis company reported a wider-than-expected fiscal second-quarter loss and revenue that came up short of forecasts. The net loss for the quarter to Sept. 30 widened to C$374.6 million ($282.4 million), or C$1.08 a share, from C$330.6 million, or C$1.52 a share, in the year-ago period. The FactSet consensus for net losses per share was C41 cents. Net revenue more than tripled to C$76.6 million ($57.7 million) from C$23.3 million, but was well below the FactSet consensus of C$90.6 million. Kilograms harvested of 40,570 was up from 15,217 a year ago but down from 40,960 in the sequential first quarter. Recreational business-to-business dry cannabis sales was 7,497 kilograms and recreational business-to-consumer dry cannabis sales were 1,064 kilograms–there were no recreational sales a year ago–while medical dry cannabis sales fell to 998 kilograms from 1,698 kilograms. “The last two quarters have been challenging for the Canadian cannabis sector as provinces have reduced purchases to lower inventory levels, retail store openings have fallen short of expectations, and Cannabis 2.0 products are yet to come to market,” said Chief Executive Mark Zekulin. He said he believes the challenges are “a short-term headwind in what is a brand new industry.” The stock has tumbled 31.2% year to date through Wednesday, while the ETFMG Alternative Harvest ETF has dropped 27.8% and the S&P 500 has climbed 23.4%.
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