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Aug. 10, 2020, 7:40 a.m. EDT

Canopy Growth's stock surges after narrower-than-expected loss, while revenue comes up short

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By Tomi Kilgore

The U.S.-listed shares of Canopy Growth Corp. /zigman2/quotes/200603886/composite CGC +1.20% /zigman2/quotes/202205609/delayed CA:WEED +1.00% 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 /zigman2/quotes/213173823/composite THCX +0.37% has lost 20.6% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.44% has gained 3.7%.

/zigman2/quotes/200603886/composite
US : U.S.: NYSE
$ 14.34
+0.17 +1.20%
Volume: 2.28M
Sept. 28, 2020 12:05p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$5.24 billion
Rev. per Employee
$115,039
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/zigman2/quotes/202205609/delayed
CA : Canada: Toronto
$ 19.13
+0.19 +1.00%
Volume: 653,394
Sept. 28, 2020 11:50a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$7.03 billion
Rev. per Employee
$150,142
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/zigman2/quotes/213173823/composite
US : U.S.: NYSE Arca
$ 8.24
+0.03 +0.37%
Volume: 6,847
Sept. 28, 2020 12:02p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,345.81
+47.35 +1.44%
Volume: 898.20M
Sept. 28, 2020 12:05p
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