Hexo Corp.'s U.S.-listed shares (NYS:HEXO) (TSE:CA:HEXO) 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 (PSE:THCX) has fallen 7% and the S&P 500 (S&P:SPX) has fallen 1.3%.
June 11, 2020, 7:55 a.m. EDT