Canopy Growth Corp (NYSE: CGC) stock slipped on Friday, after the cannabis producer published its fiscal fourth-quarter financial results. Although the Canadian-based company reported revenue that smashed analyst estimates late Thursday, its gross margins and net loss fell short.
Shares tumbled 6.4% before the opening bell as investors digested the results. The stock, which has gained more than 50% since the beginning of the year, was down $3.14, or 7.12% to $40.59 as of 10:20 a.m. ET.
CGC Earnings & Outlook
Canopy Growth had a net loss of C$323.4 million, or C$0.98 per share, compared with a net loss of C$54.4 million in the same period last year. Analysts expected the company to report a net loss of C$95.2 million, or C$0.25 per share based on figures compiled by FactSet.
Revenue came in at C$94.1 million, up from C$22.8 million in the fourth quarter of the previous year. The company attributed the sales growth to moves aimed at boosting its retail operations after recreational marijuana was legalized in Canada as well as increased production capacity.
On average, analysts polled by FactSet expected Canopy Growth to report revenue of C$90.6 million in the quarter. The company said its recreational marijuana sales fell from C$71.6 million in the previous quarter to C$68.9 million in its latest quarter.
It sold a total of 9,326 kilograms of cannabis during the quarter, compared with 10,102 in the previous quarter. For the current quarter, Canopy Growth expects its harvest to increase to around 34,000 kilograms in Canada.
Canopy Growth CEO Comments
“The fourth quarter wraps up a historic year with major steps taken in Canada to build-out our national platform while scaling all of our processes to bring cannabis to market. The third quarter of the year benefitted from months of advanced production while the fourth quarter relied more on efficient throughput and a more automated platform,” commented Bruce Linton, Chairman and Co-CEO of Canopy Growth.
“With more product formats coming to the Canadian market later in the year, we are working hard to ensure that we are ready to hit the ground running with products, formats and brands that Canadians trust,” Linton added.
Canopy Growth Corp Profile
Canopy Growth Corp through its subsidiaries is the licensed producer of medical marijuana in Canada. The company grows, produces and sells medical marijuana. It operates diverse brands and variety supported by over half million square feet of indoor and greenhouse marijuana production.
It sells medical marijuana under various brand names including Tweed, Bedrocan, and Mettrum. A majority of the revenue is derived from the sale of medical marijuana by Tweed and Bedrocan in Canada. – Warrior Trading News