Canopy Growth shares soar after CEO says cannabis company will be profitable by 2022Posted by On


Canopy Growth Corp. shares soared 11% Tuesday, after the Canadian cannabis company posted a wider-than-expected loss for its fiscal third quarter, but revenue that beat estimates, and offered an upbeat outlook that sees the company achieving profitability in the second half of 2022.

Smith Falls, Ontario-based Canopy
CGC,
+11.90%

WEED,
+11.90%

posted a net loss of C$829 million ($650.9 million), or C$2.43 a share, for the quarter to Dec. 31, wider than the loss of C$109.6 million, or 26 cents a share, posted in the year-earlier period. The FactSet consensus was for a loss of 32 cents a share.

Revenue net of excise taxes rose to C$152.5 million from C$123.8 million, above the FactSet consensus of C$149.8 million.

The net loss was mostly due to impairment and restructuring charges of C$416 million, the bulk of which stem from Chief Executive David Klein’s overhaul of the company’s sprawling operations. In December, Klein announced the closure of four of Canopy’s indoor sites and the ending of outdoor cannabis grow in Saskatchewan, resulting in the loss of about 220 jobs.

Klein, who was brought in to his role from Constellation Brands Inc.
STZ,
+2.26%
,
Canopy’s largest shareholder with a stake of about 39%, is aiming to cut costs by up to C$200 million in the next 12 to 18…

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Canopy Growth Corp. shares soared 11% Tuesday, after the Canadian cannabis company posted a wider-than-expected loss for its fiscal third quarter, but revenue that beat estimates, and offered an upbeat outlook that sees the company achieving profitability in the second half of 2022.

Smith Falls, Ontario-based Canopy
CGC,
+11.90%

WEED,
+11.90%

posted a net loss of C$829 million ($650.9 million), or C$2.43 a share, for the quarter to Dec. 31, wider than the loss of C$109.6 million, or 26 cents a share, posted in the year-earlier period. The FactSet consensus was for a loss of 32 cents a share.

Revenue net of excise taxes rose to C$152.5 million from C$123.8 million, above the FactSet consensus of C$149.8 million.

The net loss was mostly due to impairment and restructuring charges of C$416 million, the bulk of which stem from Chief Executive David Klein’s overhaul of the company’s sprawling operations. In December, Klein announced the closure of four of Canopy’s indoor sites and the ending of outdoor cannabis grow in Saskatchewan, resulting in the loss of about 220 jobs.

Klein, who was brought in to his role from Constellation Brands Inc.
STZ,
+2.26%
,
Canopy’s largest shareholder with a stake of about 39%, is aiming to cut costs by up to C$200 million in the next 12 to 18…



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