Canopy Growth Corp. U.S.-listed shares (NAS:CGC) (TSE:CA:WEED) tumbled 19% premarket, after the Canadian cannabis market leader posted weaker-than-expected earnings for its fiscal fourth quarter. Smiths Falls, Ontario-based Canopy said it had a net loss of C$1.33 billion ($946.4 million), or C$3.72 a share, in the quarter to March 31, wider than the loss of C$347.5 million, or C$1.10 a share, posted in the year-earlier period. The loss included C$743 million in impairment and restructuring charges, most of which are non-cash, the company said. Revenue net of excise taxes rose to C$107.9 million from C$94.1 million. The FactSet consensus was for a loss per share of 59 cents and revenue of C$128.9 million. Chief Executive David Klein said the company was resetting its strategy to be faster and more agile with fiscal 2021 expected to be a year of transition. "Canopy Growth's overall strategy is to unleash the full potential of cannabis, capture sizable market share in focus categories and markets and execute a path to profitability to build sustainable, long-term shareholder value," the company said in a statement. As a result, and given the uncertainty created by the coronavirus pandemic, Canopy is withdrawing previously offered guidance for achieving positive adjusted EBITDA and net income. The company had a gross cash balance of C$2.0 billion as of March 31. Shares have gained 3% in the year to date, while the Cannabis ETF (PSE:THCX) has fallen 11% and the S&P 500 (S&P:SPX) has fallen 6%.
May 29, 2020, 12:29 p.m. EDT