Marijuana Stocks Surge As Canopy Growth Sees Path To Profits, Tilray Scores U.K. Medical Marijuana DealPosted by On


Canopy Growth (CGC) on Tuesday reported a big fiscal third-quarter loss but expects profitability within a year. Meanwhile, fellow Canadian pot producer Tilray reached a deal to distribute its medical marijuana products in the U.K. Canopy Growth stock rose, Tilray soared and other marijuana stocks also advanced.




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Marijuana stocks have run higher, as Canada’s industry weighs its prospects in the U.S. but deals with losses, cutbacks and competition at home.

Canopy Growth Earnings

Estimates: Wall Street expected Canopy Growth to lose 21 cents per share, or 27 Canadian cents in the fiscal Q3 2021. Revenue was expected to increase 25% from a year ago to $116.91 million, or 148.98 million Canadian dollars.

Results: Canopy Growth lost 2.43 Canadian dollars with revenue up 41% to 152.5 Canadian dollars. The loss may not be comparable to estimates, amid big impairment and restructuring costs.

Outlook: Canopy sees compound annual growth rate of 40%-50% from fiscal 2022-2024. It expects positive adjusted EBITDA in the second half of 2022 with a 20% EBITDA margin in fiscal 2024. It expects positive operating cash flow in 2023 and 2024.

CEO David Klein, during the company’s earnings call, said the company expects to enter the U.S. this year, echoing previous remarks.

He added that Canopy is working with Constellation Brands (STZ) — its largest investor — as well as lawyers…

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Canopy Growth (CGC) on Tuesday reported a big fiscal third-quarter loss but expects profitability within a year. Meanwhile, fellow Canadian pot producer Tilray reached a deal to distribute its medical marijuana products in the U.K. Canopy Growth stock rose, Tilray soared and other marijuana stocks also advanced.




X



Marijuana stocks have run higher, as Canada’s industry weighs its prospects in the U.S. but deals with losses, cutbacks and competition at home.

Canopy Growth Earnings

Estimates: Wall Street expected Canopy Growth to lose 21 cents per share, or 27 Canadian cents in the fiscal Q3 2021. Revenue was expected to increase 25% from a year ago to $116.91 million, or 148.98 million Canadian dollars.

Results: Canopy Growth lost 2.43 Canadian dollars with revenue up 41% to 152.5 Canadian dollars. The loss may not be comparable to estimates, amid big impairment and restructuring costs.

Outlook: Canopy sees compound annual growth rate of 40%-50% from fiscal 2022-2024. It expects positive adjusted EBITDA in the second half of 2022 with a 20% EBITDA margin in fiscal 2024. It expects positive operating cash flow in 2023 and 2024.

CEO David Klein, during the company’s earnings call, said the company expects to enter the U.S. this year, echoing previous remarks.

He added that Canopy is working with Constellation Brands (STZ) — its largest investor — as well as lawyers…



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