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June 11, 2020, 7:55 a.m. EDT

Hexo Corp. shares soar premarket after revenue tops estimates

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By Ciara Linnane

Hexo Corp.'s U.S.-listed shares /zigman2/quotes/206508254/composite HEXO +4.20% /zigman2/quotes/200008967/delayed CA:HEXO +3.26% soared 19% in premarket trade Thursday, after the Canadian cannabis company beat revenue estimates for its fiscal third quarter. Ottawa-based Hexo said it had a net loss of C$19.5 million ($14.4 million), or 7 cents a share, in the quarter, wider than the loss of C$7.8 million, or 4 cents a share, posted in the year-earlier period. Revenue net of excise taxes came to $22.1 million, up from C$12.9 million. The FactSet consensus was for a loss of 5 cents a share and revenue of C$20.3 million. The company said it sold 9,338 kg of adult-use cannabis gram and gram equivalents, up 42% from the second quarter. "The primary driver of the increase in sales during the quarter was the increase in sales from Original Stash," the company said in a statement. "Newly launched products such as hash and oil extract drops also contributed to overall adult-use sales growth." Hexo booked impairment charges of C$138.3 million on its Niagara facility and intangible assets acquired from Newstrike Brands Ltd. The Niagara facility has been listed for sale. "While we continue to operate during a pandemic, we continue to be cautious about future expectations," the company said. Shares have fallen 36% in the year to date, while the Cannabis ETF /zigman2/quotes/213173823/composite THCX +3.71% has fallen 7% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.27% has fallen 1.3%.

/zigman2/quotes/206508254/composite
US : U.S.: NYSE
$ 0.72
+0.03 +4.20%
Volume: 10.05M
Aug. 10, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$280.91 million
Rev. per Employee
N/A
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/zigman2/quotes/200008967/delayed
CA : Canada: Toronto
$ 0.95
+0.03 +3.26%
Volume: 2.66M
Aug. 10, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$375.92 million
Rev. per Employee
N/A
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/zigman2/quotes/213173823/composite
US : U.S.: NYSE Arca
$ 10.33
+0.37 +3.71%
Volume: 37,255
Aug. 10, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,360.47
+9.19 +0.27%
Volume: 2.57B
Aug. 10, 2020 5:12p
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