Market Overview

Canopy Growth Shares Stunted After Reporting Major Revenue Miss

Canopy Growth Shares Stunted After Reporting Major Revenue Miss

Shares of Canadian cannabis company Canopy Growth Corp (NYSE: CGC) were down more than 8 percent Wednesday morning after certain aspects of the company's fiscal second-quarter earnings report disappointed against some of the most conservative estimates, Business Insider reported.

What Happened

Canopy Growth said it lost 1.52 Canadian dollars per share — the U.S. dollar equivalent of $1.15 — in the fiscal second quarter on revenue of CA$23.327 million. Other notable items from the report include: 

  • Active registered patients rose 34 percent from a year ago to 84,400.
  • Kilograms and the kilogram equivalent sold rose 9 percent to 2,197.
  • Kilograms harvested rose 265 percent to 15,127.
  • The average selling price per gram rose 24 percent to $9.87.
  • Inventory and biological assets rose 76 percent to $171 million.
  • The company made "limited test shipments" to recreational channels.
  • The company ended the quarter with supply commitments in Canada (excluding Ontario) of 70,000 kg.
  • The company started shipping value-added products like Softgels capsules.

Why It's Important

Revenue during the second quarter fell well short of the consensus estimate of CA$59.1 million. 

What's Next

Canopy Growth's combination of inventory, new products, increased demand from physical retail stores and growing internal and channel efficiencies position it well to command a "significant and sustainable" market share in Canada, CEO Bruce Linton said in a statement. The company continues to eye the U.S. market and is prepared to expand "when it is federally permissible to do so," he said. 

Related Links:

What Jeff Sessions' Resignation Could Mean For Cannabis Stocks

The '420 Investor' Talks Canada's Legalization, Calls Cannabis Stocks A Crowded Trade Right Now

Posted-In: Bruce Linton Business Insider marijuanaCannabis Earnings News Markets Media Best of Benzinga


Related Articles (CGC)

View Comments and Join the Discussion!

Cannabis Movers

Sign up for our secret cannabis newsletter!
Never miss out on the breaking news in the Cannabis Industry!