Canopy Growth Corp CGC shares are trading higher by 8.66% to $0.56 Monday morning. The stock is rebounding during Monday's session, recovering following Friday weakness, after the company reported worse-than-expected fourth-quarter financial results.
What Happened With CGC?
Canopy Growth announced its quarterly financial results, reporting losses of 24 cents per share. This figure fell short of the analyst consensus estimate of a loss of 15 cents.
In terms of quarterly sales, Canopy Growth reported $72.61 million, which slightly missed the analyst consensus estimate of $73.19 million by less than 1%. This reflects a decrease of 17.7% compared to sales of $88.21 million in the corresponding period last year.
See Also: Canopy Growth FY23 Net Revenue Declines 21%
What Else?
Among highlights, the company implemented strategic measures including divestiture of national cannabis retail operations, ceasing sourcing from certain facilities, consolidating cultivation and adopting a third-party sourcing model.
These actions reduced expenses by $125 million. Net revenue decreased 21% YoY to $403 million, but adjusting for divestitures, revenue decreased 11% compared to the previous year. Canadian medical cannabis revenue increased 6% YoY.
The company also entered an agreement with Indiva Limited for distribution and sales of Wana branded products, expected to enhance profitability and strengthen its position in the edibles category in Canada.
According to data from Benzinga Pro, CGC has a 52-week high of $4.77 and a 52-week low of $0.50.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
