Canopy Growth says its Q2 loss was lower than expected.
The Canadian company reports revenues of £79.40 million.
Canopy’s market share grew by 200 basis points in the second quarter.
Canopy Growth Corp (TSE: WEED) announced on Monday that its loss in the second quarter of the fiscal year was less than expected. The company also reported revenues that exceeded analysts’ estimates.
The company’s shares opened Monday with a gain of approximately 13% in the stock market, but lost almost half of its intraday profit in the next hour. Including the price action, Canopy Growth is now changing hands at £19.27 per share after recovering from a year low of £8.30 per share in March.
The share started the year at £15.33 per share. Learn more about why stock market prices rise and fall.
Canopy Growth’s estimates by analysts for the financial results of the 2nd quarter
Canopy Growth stated that its second quarter loss was £18.18 million, or 5.28 pence per share. In the same quarter last year, it reported a net profit of £151.94 million or 14.67 pence per share.
For the quarter ended September 30, the Ontario-based company reported revenues of £79.40 million, compared to £50.24 million in the same period last year. In the previous quarter (Q1), Canopy Growth had reported 22% year-over-year revenue growth, according to the report released in August.
According to FactSet, analysts had predicted that the company would print £69.31 million of revenue in the final quarter. Their estimate of loss per share was a higher 21.71 pence per share. In an announcement last week, Canopy said it would move its U.S. listing to the Nasdaq Global Select Market starting November 13.
Notes from CFO Mike Lee on Monday
CFO Mike Lee commented on Monday’s financial report and said
“We have seen a further improvement in our operating expense ratio by another quarter, while our marketing and R&D investments are being realigned to increase sales. Importantly, our end-to-end review has identified cost savings opportunities in the range of $150 to $200 million in manufacturing costs, general and administrative expenses and inventories, and efforts are underway to deliver value quickly”.
Canopy Growth also said on Monday that its market share increased by 200 basis points in the last quarter.
The Canadian company did quite poorly on the stock market last year with an annual decline of almost 30%. At the time of writing this article, Canopy Growth Corp. is valued at £7.13 billion sterling.