Canopy Growth's stock surges after narrower-than-expected loss, while revenue comes up short
The U.S.-listed shares of Canopy Growth Corp. charged up 6.8% in premarket trading Monday, after the Canada-based cannabis company reported a narrower-than-expected fiscal first-quarter loss, although revenue rose less than forecast. The net loss for the quarter to June 30 narrowed to C$108.5 million ($81.05 million), or 30 cents a share, from C$185.9 million, or 54 cents a share, in the year-ago period. The FactSet consensus was for a loss of 35 cents a share. Revenue grew 22% to C$110.5 million ($82.47 million), below the FactSet consensus of C$112.3 million, as Canadian recreational net revenue fell 11% while Canadian medical revenue increased 19%. "Following our previously announced restructuring actions, we have substantially reduced our expense and cash burn in this quarter in addition to reducing headcount by over 18% since beginning of this calendar year," said Chief Financial Officer Mike Lee. "Our marketing and R&D investments are being re-allocated to programs with high-return potential in order to drive sales." The stock has dropped 21.2% year to date through Friday, while the Cannabis ETF has lost 20.6% and the S&P 500 has gained 3.7%.
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.