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6:16 a.m. Sept. 23, 2021 - By Steve Gelsi
Canadian retail cannabis sales set record, shares riseShares of Canadian cannabis companies rose on Thursday after Statistics Canada reported record sales in July. New Cannabis Ventures reported that July retail sales for the country reached C$338.9 million, up 6% from June. Sales for July rose 45.6% from a year ago. Shares of Tilray Inc. rose 3.2%, Canopy Growth advanced by 3.4%, Aurora Cannabis gained 3.1% and Village Farm International added 3.5%. Sitting out the gains, Ayr Wellness dipped 0.3%.
7:10 a.m. Aug. 31, 2021 - By Steve Gelsi
Valens buys craft grower Stash CannabisThe Valens Company Inc. shares fell 0.7% on Tuesday after the cannabis company said it agreed to acquire all of the outstanding shares of premium marijuana brand Citizen Stash Cannabis Corp. in a deal that values the target company at about $43 million on an enterprise value basis. Shares of Citizen Stash rose 11.8%. Under terms of the deal, Citizen Stash shareholders will receive 0.1620 of a Valens common share for each Citizen Stash common share. Valens said the transaction will add to earnings in 2021 and 2022 before synergies, along with an expansion into premium flower and pre-rolled cigarettes, which account for more than 70% of retail sales. Valens Company CEO Tyler Robson said the acquisition will help the company "significantly expand its presence in the recreational market."
6:15 a.m. Aug. 11, 2021 - By Tonya Garcia
Wendy's announces earnings beat, increased dividend and plans for more restaurants and delivery kitchensWendy's Co. stock rose 3.7% in Wednesday trading after the burger chain reported second-quarter earnings that beat expectations. Net income totaled $65.7 million, or 29 cents per share, up from $24.9 million, or 11 cents per share, last year. Adjusted EPS of 27 cents beat the FactSet consensus for 18 cents. Revenue of $493.3 million was up from $402.3 million and ahead of the FactSet consensus for $462.6 million. Global same-restaurant sales rose 17.4%, beating the FactSet consensus for a 15.8% rise. U.S. same-restaurant sales were up 16.1% while international same-restaurant sales grew 31.4%. The U.S. FactSet consensus was for a 14.1% increase. Wendy's has announced plans for a $10 million incremental spend on advertising for the breakfast menu in 2021, bringing the total for the year to $25 million. Wendy's restated its goal to make breakfast 10% of sales by 2022. The company also aims to open and operate 700 delivery kitchens in the U.S., Canada and U.K. with Reef Kitchens by 2025 after a test of eight kitchens in Canada proved successful. Cash obtained from a debt refinancing will fund a $100 million plan to add 80-to-90 new franchise locations between 2022 and 2025. Wendy's is increasing its quarterly dividend by 20% to 12 cents per share payable on September 15 to shareholders of record as of September 1. And the share buyback program has gotten authorization for an additional $70 million, bringing the total to $220 million. For 2021, Wendy's now expects global sales growth of 11% to 13%, and adjusted EPS of 79 cents to 81 cents. The FactSet consensus is for sales of $1.854 billion, suggesting growth of 6.9%, and EPS of 74 cents. Wendy's stock has risen 4.5% for the year to date while the S&P 500 index has gained 18.4% for the period.
3:30 a.m. Aug. 6, 2021 - By Ciara Linnane
Canopy Growth revenue falls short of estimatesCanopy Growth Corp. shares rose 0.8% in premarket trade Friday, after the Canadian cannabis company posted a profit for its fiscal first quarter, thanks to noncash fair value changes in some of its holdings of more than C$600 million ($479.9 million). The company posted net income of C$392.4 million, or 84 cents a share, for the quarter to June 30, after a loss of C$108.5 million, or 30 cents a share, in the year-earlier period. Earnings were boosted by other income that totaled C$581 million, primarily due to non-cash fair value changes of $601 million. Revenue net of excise taxes came to C$136 million, up 23% from the year-earlier period. The FactSet consensus was for a loss of 23 cents a share and revenue of C$151 million. "While we're encouraged by regulatory advancement in the U.S., Canopy is not waiting as we continue to scale our business on both sides of the border with an exciting product pipeline planned for the coming quarters," Chief Executive David Klein said in a statement. Revenue was driven by double-digit growth in Canadian cannabis and other consumer products, which offset a decline in international sales. The company said CBD business in the U.S., led by the Martha Stewart line, continued to built momentum. The company is still aiming for positive adjusted EBTIDA by the end of fiscal 2022, driven by higher revenue, cost savings and improved price/mix. Shares have fallen 22% in the year to date, while the Cannabis ETF has gained 21% and the S&P 500 has gained 18%.
2:51 a.m. July 30, 2021 - By Ciara Linnane
Burger King parent Restaurant Brands tops consensus estimates, resumes dividend and share buybacksRestaurant Brands International Inc. posted above-consensus earnings for the second quarter on Friday, after the COVID-19 pandemic hurt business in the year-earlier period. The parent of Burger King and Tim Hortons said it had net income of $390 million, or 84 cents a share, for the quarter, up from $163 million, or 35 cents a share, in the year-earlier period. Adjusted per-share earnings came to 77 cents, ahead of the 61 cents FactSet consensus. Revenue rose to $1.438 billion from $1.048 billion, also ahead of the $1.369 billion FactSet consensus. Digital sales rose nearly 60% in home markets and were up 15% from the prior quarter. Chief Executive José E. Cil said he was encouraged by the momentum across the business and the rapid adoption of digital channels by customers. The board has approved a dividend and a $1 billion share buyback program, he said. Burger King sales rose 37.9% to $5.883 billion, while Tim Horton sales rose 33% to $1.637 billion. Shares were slightly higher premarket and have gained 6.2% in the year to date, while the S&P 500 has gained 17.7%.
3:06 a.m. June 15, 2021 - By Ciara Linnane
Hexo stock price target cut by Stifel and AGP after earnings disappoint, but pending deals are viewed as positiveStifel analysts reiterated their hold rating on shares of Canadian cannabis company Hexo Corp. on Tuesday and lowered their price target to C$7.50 ($6.15) from C$10.00, after disappointing earnings led them to a "more cautious approach" to the stock. The report released Monday was similar to results from peers, most of whom have seen sequential and year-over-year declines in revenue in their latest quarter, said analysts led by W. Andrew Carter. "But the underperformance related to specific company issues in Quebec where HEXO's supply chain limitations drove the weaker sales performance," Carter wrote in a note to clients. "Up until F3Q21, HEXO's consistent sales growth while rationalizing its cost structure has differentiated the company." Hexo will likely be an a different position next year, after a flurry of M&A activity this year, but "the magnitude of the underperformance drives scrutiny for the core business and the ability to realize value from over C$1.1 billion deployed towards M&A," said the note. Hexo posted Hexo announced its in late May with news that it is acquiring privately held Redecan for C$925 million in cash and stock. That comes after the February news of the purchase of Zenabis Global Inc. for C$235 million in stock, and earlier in May, it announced the acquisition of 48North Cannabis Corp. for C$50 million in stock. Alliance Global Partners analysts also lowered their stock price target, to C$12 from C$14, but reiterated a buy rating given the pending deal closures. Hexo shares were not active premarket, but have gained 68% in the year to date, while the Cannabis ETF has gained 40% and the S&P 500 has gained 13%.
4:09 a.m. June 14, 2021 - By Ciara Linnane
Hexo shares slide almost 5% premarket after third-quarter earnings fall far short of estimatesHexo Corp. shares slid 4.8% in premarket trade Monday, after the Canadian cannabis company posted a wider-than-expected loss for its fiscal third quarter and revenue that fell short of estimates. Ottawa-based Hexo said its loss widened to C$20.7 million ($17 million), or 17 cents a share, in the quarter to April 30, from C$19.5 million, or 38 cents a share, a year ago. Revenue climbed to C22.7 million from C$22.1 million. The FactSet consensus was for a loss of 6 cents a share and revenue of C$34.5 million. "While this was a challenging quarter, we maintained our number one position in the beverage category and increased our net sales outside of Quebec by 169% over last year, including 14% sequential quarterly growth in Ontario, while continuing to maintain our number one position as the preferred supplier to Quebec," Chief Executive Sebastien St-Louis said in a statement. "Moving forward, we are committed to rebuilding our strain strategy and brand mix in the province of Quebec to ensure we meet consumer needs and maintain our dominant position in the province." Hexo announced its in late May with news that it is acquiring privately held Redecan for C$925 million in cash and stock. That comes after the February news of the purchase of Zenabis Global Inc. for C$235 million in stock, and earlier in May, it announced the acquisition of 48North Cannabis Corp. for C$50 million in stock. Hexo shares have gained 80% in the year to date, while the Cannabis ETF has gained 44% and the S&P 500 has gained 13%.
11:59 a.m. May 20, 2021 - By Jeremy C. Owens
Aurora Cannabis files for stock sale, mentions U.S. acquisition possibilityAurora Cannabis Inc. filed for a potential sale of $300 million in fresh shares Thursday, and mentioned the possibility of a U.S. acquisition. The Canadian cannabis company announced that it planned a $300 million at-the-market share offering , and filed with the Securities and Exchange Commission for the sale on Thursday. In both the prospectus and a news release announcing the filing, Aurora suggested the proceeds would be used toward finding an acquisition target in the U.S. market. "Aurora believes this filing will provide maximum flexibility for the Company to pursue select acquisitions going forward, including within the U.S.," the company stated in . "Aurora confirms that its current cash position remains strong at approximately $525 million as of May 13, 2021. Given the strength of Aurora's current cash position, it is not expected to need to access the ATM Program without an accretive use of proceeds." Aurora , but could be looking for a more traditional marijuana asset in the U.S. as many of the country's states legalize recreational sales of the drug. Canadian companies are not allowed to own cannabis companies in the U.S., as the drug is still federally illegal in the country, but can acquire warrants to own a company if or when the drug is decriminalized federally. Aurora's U.S.-listed stock was about 1.5% higher heading into the close Thursday, after falling nearly 40% in the past three months.
4:32 a.m. May 19, 2021 - By Tonya Garcia
TJX earnings beat expectations though COVID-related store closures still weighTJX Cos. reported fiscal first-quarter net income of $533.9 million, or 44 cents per share, after a loss of $887.5 million, or 74 cents per share, last year. Sales of $10.09 billion were up from $4.41 billion last year. The FactSet consensus was for EPS of 31 cents and sales of $8.61 billion. All U.S. stores were operating during the quarter, but the off-price retailer still had locations shuttered in other regions for 14% of the days in the first quarter due to COVID-19. European locations were closed for 76% of the days, and Canadian stores were closed 25%. Still, it was a marked improvement from last year when stores around the world were shut for half the days. Three hundred locations around the globe are currently temporarily closed. Open-only comp store sales were up 16% in the most recent quarter. Open-only comp store sales only account for the days when stores were open during fiscal Q1 2022 and the same period in fiscal 2020. Due to the continued uncertainty of the pandemic, TJX did not provide guidance. However, the company said open-only comp store sales at the start of the second quarter have been similar to the first quarter. The TJX lineup includes TJ Maxx and HomeGoods. TJX stock slipped 0.9% in Wednesday premarket trading, but is up 4.2% for the year to date. The S&P 500 index has gained 9.9% for 2021 so far.
4:41 a.m. May 7, 2021 - By Ciara Linnane
Tilray shares soar 10% premarket after Jefferies upgrades to buy, says Aphria merger 'the perfect match'Jefferies upgraded shares of the new Tilray Inc. to buy from underperform on Friday, and said the recent merger of the company with rival Aphria Inc. was "the perfect match." Analyst Owen Bennett raised his price target to $23 from $4.77. "In Canada, a leading portfolio of brands, supported (by) an efficient cost structure," the analyst wrote in a note to clients. "In Europe, the market is now picking up, while Tilray's scale and Aphria's unique German positioning make it perfectly suited to succeed. And in the US, the combined company's broader consumer goods portfolio and strong balance sheet supports excellent optionality around both US THC and CBD." Bennett is expected pro-forma fiscal 2020 to fiscal 2024 combined sales growing 33% to leave fiscal 2024 sales at $1.7 billion, compared with average major Canadian licensed producers of $482 million and major U.S. multi-state operators of $1.6 billion. Tilray shares were up 10% premarket and have gained 71% in the year to date, while the Cannabis ETF has gained 36% and the S&P 500 has gained 11.9%.
4:57 a.m. March 23, 2021 - By Tonya Garcia
General Mills to sell its stake in Yoplait European operations, take ownership of Canadian Yoplait businessGeneral Mills Inc. said Tuesday that it has entered into a memorandum of understanding to sell its 51% stake in European Yoplait operations to French dairy cooperative Sodiaal. In exchange, the food company will take full ownership of the Canadian Yoplait business, acquiring Sodiaal's 49% ownership, and royalty-free use of the Yoplait and Liberté brands in the U.S. and Canada. The European Yoplait business that Sodiaal is taking had net sales of $740 million in 2020. General Mills' wholly-owned yogurt operations in the U.S. and Canada generated $1.4 billion in net sales in fiscal 2020. "[W]e're taking another step toward advancing our Accelerate strategy and further reshaping our portfolio to drive profitable growth for the long term," said General Mills Chief Executive Officer Jeff Harmening in a statement. "This transaction improves our growth profile, enhances our margins, and creates value for our shareholders. Additionally, it increases our focus on the brand platforms that have the greatest growth potential." The transaction is expected to close by the end of 2021. Other General Mills brands include Pillsbury, Betty Crocker, and Cinnamon Toast Crunch cereal, which was getting a lot of attention on Twitter Tuesday morning for what one customer . General Mills stock has gained 30% over the past year while the S&P 500 index is up 76.1% for the period.
3:47 a.m. March 10, 2021 - By Ciara Linnane
Canadian cannabis company Sundial initiated as neutral at Cantor after rally Cantor Fitzgerald initiated coverage of Canadian cannabis company Sundial Growers Inc. on Wednesday with a neutral rating after a retail investor-fueled rally pushed the stock up 21 times from its late-October bottom of 14 cents to its recent Feb. 10 peak of $2.95. "Thus, even though fundamentals have remained mixed, with an ongoing market-share loss according to the latest scanner data, and despite a 3Q20 reported net sales decline of 36% seq (-54% YoY), the run-up in the share price enabled the company to raise equity and convert warrants and debt," analyst Pablo Zuanic wrote in a note to investors. That has boosted the penny stock's cash holdings to an estimated C$700 million ($553.5 million) at end February from about C$26 million at the end of September, he wrote. "In an industry that is quickly consolidating, this puts the company in a good position to acquire smaller companies that have developed solid niches in parts of the Canadian market or overseas," said the note. "We believe that SNDL is on the lookout for opportunities and that this may itself trigger defensive M&A action among other companies (we see the recent HEXO+Zenabis (N) merger as one example)." However, given the stock's valuation and the volatility in its share price, Zuanic is not recommending investors take an active position. The stock is trading at 43 times enterprise value to current sales, which is far above its peer group average. The analyst assigned Sundial a 12-month price target of $1.15, compared with its current price of $1.39 at Tuesday's close. Sundial has had a checkered history and The stock has gained 31% in the last 12 months, while the Cannabis ETF has gained 138% and the S&P 500 has gained 41%.
2:16 a.m. March 1, 2021 - By Tomi Kilgore
L3Harris to sell its military training, combat propulsion businesses for $1.45 billionCAE Inc. announced Monday an agreement to buy L3Harris Technologies Inc.'s military training business for $1.05 billion. CAE expects the deal to add to earnings in the first full year after the closing, which is expected to occur in the second half of 2120. L3Harris' military training business had revenue of about $500 million in 2020. Separately, L3Harris said it is also selling its combat propulsion systems and related business to Renk AG for $400 million in cash. That business had annual revenue of about $230 million. L3Harris plans to use the proceeds from the sales for share repurchases. "hese agreements place our Military Training and Combat Propulsion Systems and related businesses with well-suited buyers, while positioning L3Harris to further focus on its core technologies and execute its strategic priorities," said L3Harris Chief Executive William Brown. CAE and L3Harris stocks were both inactive in premarket trading. Over the past three months, shares of L3Harris have lost 5.2% and CAE have gained 8.3%, while the S&P 500 has advanced 4.1%.
3:48 a.m. Feb. 26, 2021 - By Ciara Linnane
Canadian cannabis company Cronos posts wider-than-expected Q4 loss but revenue beats estimatesCronos Group Inc. shares slid 3% in premarket trade Friday, after the Canadian cannabis company posted a wider-than-expected loss for the fourth quarter, but revenue that beat estimates. The Toronto-based company swung to a net loss of $111.7 million, or 31 cents a share, in the quarter, after income of $61.6 million, or 17 cents a share, in the year-earlier period. Revenue net of excise taxes came to $17.0 million, up from $7.3 million a year ago. The FactSet consensus was for a loss per share of 8 cents and revenue of $13.3 million. Revenue gains were driven by continued growth in the Canadian recreational cannabis market, sales in the Israeli medical market and growth in the U.S. segment, the company said in a statement. That was partly offset by non-recurring wholesale revenue in the Canadian market in the year-earlier quarter and price cuts on various adult-use products in Canada in the recent quarter. The company wrote down $15 million of dried cannabis inventory and cannabis extracts, mostly due to price pressure in Canada. "The company may incur further inventory write-downs due to pricing pressures in the marketplace," said the statement. Cronos said its Happy Dance brand, a line of vegan, U.S. hemp-derived CBD bath and body products co-founded by actress Kristen Bell, has secured a first U.S. retailer in Ulta Beauty and expects to launch online and in-store in the coming weeks. Shares have gained 77% in the last 12 months, while the Cannabis ETF has gained 91% and the S&P 500 has gained 23%.
4:13 a.m. Feb. 24, 2021 - By Ciara Linnane
Aurora Cannabis reiterated as underperform by Jefferies after earnings 'reinforce concerns on its underlying business'Jefferies analyst Owen Bennett reiterated his underperform rating on Aurora Cannabis Inc. stock on Wednesday, and said "only reinforced our concerns on its underlying business." Canadian sales pressure "were more pronounced than we had assumed, with little improvement on the margin profile," Bennett wrote in a note to clients. "Second, given the near-term debt overhang and its high cash burn rate, we raise questions marks on whether Aurora's balance sheet is strong enough to support a potential US push." The analyst raised his stock price target to C$9.44 ($7.51) from C$4.59, to reflect U.S. developments. The cannabis sector has rallied in recent weeks amid high hopes for reforms of U.S.' strict cannabis laws, that continue to classify the plant as a Schedule I drug, alongside heroin. The new administration is deemed more cannabis-friendly than the last one, and already Senate Majority Leader Chuck Schumer "While Aurora is not as expensive as certain other Canadian peers, for the others you can make a much better case for US optionality," said Bennett. "For example, Canopy takes ownership in an MSO and Cronos is sitting on C$1bn in cash with little debt, so can buy US assets, or at least invest aggressively. The same can't be said for Aurora." The analyst lowered his full-year gross margin forecast and raised his sales, general & administration cost forecasts. Aurora's U.S.-listed shares were up 4.3% premarket, but have fallen 43% in the last 12 months, while the Cannabis ETF has gained 87% and the S&P 500 has gained 16%.
4:06 a.m. Feb. 24, 2021 - By Tonya Garcia
TJX profit and sales take a hit after COVID-19-related store closuresTJX Cos. shares fell 2.7% in Wednesday premarket trading after the off-price retailer reported fourth-quarter earnings and sales that missed expectations. Net income totaled $325.5 million, or 27 cents per share, down from $984.8 million, or 81 cents per share last year. Sales totaled $10.94 billion, down from $12.21 billion last year. The FactSet consensus was for EPS of 62 cents and sales of $11.48 billion. TJX, whose portfolio of stores includes TJ Maxx and Marshalls, says Q4 sales took a $950 million to $1.05 billion hit due to COVID-19-related store closures in Canada and Europe. Earnings per share were reduced by 18 cents to 21 cents. Stores in Canada were closed for about 32% of the fourth quarter, and European stores were closed 63%. There are currently about 690 stores closed due to the pandemic, most in Europe where the company expects stores to be closed for 67% of the first quarter. Due to the ongoing uncertainty from the coronavirus, TJX did not provide financial guidance. TJX stock has gained 13.7% over the past year while the S&P 500 index is up 20.3% for the period.
3:45 a.m. Feb. 12, 2021 - By Ciara Linnane
Aurora Cannabis stock slides 4% premarket as MKM downgrades stock to sell MKM analyst Bill Kirk downgraded the stock of Aurora Cannabis Inc. to sell on Friday, after the company's fiscal second-quarter earnings published late Thursday fell short of expectations. The numbers were "concerning on two fronts," Kirk wrote in a note to clients. The company's consumer cannabis revenue of C$28.6 million ($22.5 million) was down 17% from the first quarter and at its lowest level since the second quarter of 2019, he wrote. The company's guidance for positive adjusted EBITDA also failed to materialize and showed deterioration from the first quarter. "We don't see a cost-cutting or growth path that gets to near-term positive EBITDA," Kirk wrote. "For perspective, Aurora collected more in COVID-related subsidies in 2Q than it generated in gross profit dollars." Aurora may be further commoditizing its flower offering by outsourcing sales functions and may struggle to distinguish itself from rivals and the excess supply in the Canadian market, said Kirk. With pricing pressures still in play, the company's decision to push grows into more premium price points "seems like a recipe for consumer/province frustration," said the analyst. In an industry that is now showing years of sequential growth, Aurora sold less recreational weed in the quarter than in any full quarter since Canada fully legalized cannabis in October of 2018, he wrote. "To the company's credit, Aurora has some strong IP from its MedReleaf acquisition and strong brands in San Rafael and Whistler (both acquired)," said Kirk. "They will try to premiumize around those offerings, but we believe the shift back toward higher price point products will be difficult. Downgrading to Sell, while maintaining our C$9 PT." Aurora shares were down 4.2% premarket, and have fallen 17% in the last 12 months, while the Cannabis ETF has gained 99.9% and the S&P 500 has gained 16%.
2:47 a.m. Feb. 11, 2021 - By Tomi Kilgore
Burger King, Popeye's parent Restaurant Brands stock falls after profit and same-store sales missShares of Burger King and Popeye's parent Restaurant Brands International Inc. dropped 1.8% in premarket trading Thursday, after the restaurant chain company reported fourth-quarter profit that missed expectations, as same-store sales declined more than forecast for its fast-food chains. Net income fell to $91 million, or 30 cents a share, from $165 million, or 54 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share fell to 53 cents from 75 cents, below the FactSet consensus of 65 cents. Revenue declined 8.2% to $1.36 billion, topping the FactSet consensus of $1.35 billion. Same-store sales for Burger King restaurants fell 7.9%, missing the FactSet consensus of a 4.5% decline; Popeye's same-store sales declined 5.8%, compared with expectations of a 4.3% drop; and Tim Horton's same-store sales were down 11.0%, beating expectations for an 11.3% decline. The company said it ended 2020 with the same restaurant count as the end of 2019, but has restarted development talks with franchisees and expects restaurant growth to be roughly in line with that of 2018 and 2019. The stock has gained 4.7% over the past three months through Wednesday, while the S&P 500 has advanced 9.4%.
2:47 a.m. Feb. 9, 2021 - By Ciara Linnane
Canopy Growth posts wider-than-expected loss but revenue tops estimatesCanopy Growth Corp. posted a wider-than-expected loss for its fiscal third quarter Tuesday, but revenue that beat estimates, causing its stock to fall then recover in premarket trade. Smith Falls, Ontario-based Canopy posted a net loss of C$829 million ($650.9 million), or C$2.43 a share, for the quarter to Dec. 31, wider than the loss of C$109.6 million, or 26 cents a share, posted in the year-earlier period. The FactSet consensus was for a loss of 32 cents a share. Revenue net of excise taxes rose to C152.5 million from C$123.8 million, above the FactSet consensus of C$149.8 million. "We are executing against our cost savings program, with several initiatives already completed and more underway to build a leaner and more agile business," Chief Financial Officer Mike Lee said in a statement. "These cost savings, along with our top-line growth and continued cost discipline, puts Canopy firmly on a path to achieve profitability during Fiscal 2022, with further improvement anticipated beyond." Net cannabis revenue came to C$99 million, boosted by an increase in Canadian recreational and international medical sales. Growth was also boosted by an increase in sales of S&B vapes, This Works health and wellness products and demand for the company's U.S. CBD products and consumer packaged goods under the BioSteel sports nutrition brand acquired in 2019. The net loss was driven by impairment and restructuring charges. Shares were up 2% premarket and have gained 123% in the last 12 months, while the Cannabis ETF has gained 93% and the S&P 500 has gained 18%.
6:15 a.m. Feb. 4, 2021 - By Tonya Garcia
Canada Goose shares soar after revenue rises for the first time since the beginning of the pandemicCanada Goose Holdings Inc. stock soared 26% in Thursday trading after the high-end outerwear company reported fiscal third-quarter earnings and sales that beat expectations. Net income totaled C$105.5 million (US$82.2 million), or 96 cents per share, down from C$114.7 million, or $1.07 per share, last year. Adjusted EPS of C$1.01 per share beat the FactSet consensus for 86 cents. Revenue totaled C$474.0 million (US$369.5 million), up from C$452.1 million last year and ahead of the FactSet consensus for C$416.1 million. This was the first time that revenue increased since the pandemic began. Global digital sales increased 39.3%. Seven of 28 Canada Goose stores remain closed due to COVID-19. Canada Goose shares have climbed nearly 39% over the last year while the S&P 500 index is up 16.8% for the period.
3:51 a.m. Jan. 19, 2021 - By Ciara Linnane
UPDATE: Aphria stock price target raised by Stifel but analysts caution on stretched valuationShares of Canadian cannabis company Aphria Inc. rose 4.4% in premarket trade Tuesday, after Stifel raised its stock price target to C$15.50 ($12.18) from C$9.80, and underscore the company's long-term prospects. But analysts led by W. Andrew Carter also reiterated a hold rating on the stock. While Aphria's earnings beat Stifel's estimates, they included lower Canadian adult use sales, which were tempered by stronger distribution sales and higher global medical sales, the analysts wrote in a note to clients. Still, they said they were However, we have been surprised at the stock's outperformance -- it has gained 25% after earnings, while the S&P 500 has fallen 1% -- following earnings and adding to postelection strength. "We believe the outperformance for the Canadian LPs on the prospect of U.S. federal reform has limited merit pushing valuations to unsubstantiated levels, but we believe our robust fundamental outlook alongside the growth prospects of the pending combination with Tilray Inc. are limiting factors for a more negative approach," the analysts wrote. ". But we believe the robust valuation (11X EV/FY22E net cannabis revenue) serves as an impediment for material outperformance with the stock likely to remain volatile." Cantor Fitzgerald raised its 12-month stock price target for Aphria to C$26 from C$11.75 on Friday, to even though it was unimpressed by the company's quarterly earning.s Aphria shares have gained 136% in the last 12 months, while the Cannabis ETF has gained 29%.
12:31 p.m. Jan. 12, 2021 - By Jeremy C. Owens
Bausch Health says annual revenue will exceed guidance, stock gains Bausch Health Corp. shares gained more than 5% in after-hours trading Tuesday after the company announced that its annual revenue will come in higher than its guidance. Bausch Health, formerly known as Valeant Pharmaceuticals before a scandal that led to large-scale changes at the company, said that fourth-quarter revenue would top $2.2 billion and lead annual sales to come in higher than the top end of its guidance range, $8 billion. "We also expect a strong finish to the year with regard to Adjusted Ebitda,' Chief Executive Joseph Papa said in a statement, without providing any figures on profit. The disclosure arrived before Bausch executives speak Wednesday morning at the JP Morgan Healthcare Conference on recent accomplishments; full results are expected to be released next month. Bausch stock closed with a 0.1% decline at $23.47, and topped $25 in after-hours trades following the release of the information.
2:21 a.m. Jan. 12, 2021 - By Tomi Kilgore
OrganiGram stock drops after cannabis company reports wider loss, revenue missThe U.S.-listed shares of OrganiGram Holdings Inc. dropped 2.3% in premarket trading, as the Canada-based cannabis company reported a much wider fiscal first-quarter net loss and net revenue that fell more than forecast, while adult-use recreational cannabis revenue jumped. The net loss for the quarter to Nov. 30 increased to C$34.3 million ($26.9 million) from about C$863,000 in the same period a year ago. The FactSet consensus for net losses was C$7.1 million. Gross revenue fell 11% to C$25.3 million ($19.8 million), while net revenue, which includes excise taxes, dropped 23% to C$19.3 million. The FactSet revenue consensus was C$20.3 million. Adult-use recreational net revenue rose 30% to C$16.8 million. Gross margin swung to a negative C$16.7 million from positive C$11.2 million. "We are pleased with our double-digit sales growth in the Canadian adult-use recreational market this past quarter as it reflects the success of many of our new product launches, particularly in the dried flower value segment," said Chief Executive Greg Engel. The company said the annualized run rate for adult use cannabis sales rose to a record $3.2 billion in October, based on data from Statistics Canada. The stock has soared 42.7% over the past three months through Monday, while the ETFMG Alternative Harvest ETF has hiked up 47.3% and the S&P 500 has gained 7.5%.
4:14 a.m. Dec. 30, 2020 - By Ciara Linnane
Canadian cannabis company Sundial acquires special purpose vehicle for about $46 millionCanadian cannabis company Sundial Growers Inc. said Wednesday it has closed the acquisition of a special purpose vehicle for C$58.9 million ($46 million) in cash, which it funded using its available cash reserves of C$110 million. The special purpose vehicle owns C$58.9 million of senior secured debt issued by Zenabis Investment Ltd, a unit of Zenabis Global Inc. The loan pays interest at a rate of 14% a year and matures on March 31, 2025. Zenabis will also pay Sundial a royalty based on quarterly sales from its medical, recreational and wholesale cannabis businesses. U.S.-listed shares of Sundial, which once had a $1 billion valuation, closed Tuesday at 46 cents.
4:31 a.m. Dec. 5, 2020 - By Ciara Linnane
Aurora leads cannabis sector rally fueled by hopes for reform under President-elect Joe Biden News that Mexico’s senate has approved a cannabis legalization bill offers further boost to battered sectorAurora Cannabis Inc. led a rally in the weed sector Tuesday that was fueled by hopes President-elect Joe Biden, finally cleared to move ahead with his administration’s transition, will push for reforms that will let companies access banks and capital markets.
10:23 a.m. Nov. 10, 2020 - By Ciara Linnane
Cannabis rally takes a pause as lackluster earnings make gains look overdone Aurora’s numbers ‘are not really standing out as anything special or overly encouraging,’ says analystThe strong rally that has propelled cannabis stocks higher since Democrat Joe Biden won the 2020 presidential election took a pause on Tuesday, as analysts weighed in on earnings from three industry heavyweights and found little to justify some of the explosive gains.
3:56 a.m. Nov. 10, 2020 - By Ciara Linnane
As pot stocks boom on hopes for U.S. legalization, Canadian cannabis companies struggle for growth Cannabis Watch: Canopy revenue grows, but Tilray’s sales are stagnant and Aurora sales decline while a prominent partnership costs $40 million to endAfter huge stock gains on the hopes of a larger market for legal pot in the U.S., Canadian cannabis companies didn’t offer much to justify the exuberance Monday.
2:37 a.m. Nov. 10, 2020 - By Ciara Linnane
Aurora Cannabis stock rally looking overdone after lackluster earnings: JefferiesThe massive run-up in shares of Canada's Aurora Cannabis Inc. amid hopes the election of Joe Biden as president will advance cannabis reform is looking overdone after the company's quarterly earnings released Monday were underwhelming, Jefferies analyst Owen Bennett wrote in a note. "Aurora's share price as of the time of writing is running up 135% since end of day on Wednesday," said Bennett. "Some may look at this performance, which also included gains of over 20% at one point intra-day today, and assume a much improved fundamental outlook and strong quarterly numbers. This is not the case, with Q1, for us, not really standing out as anything special or overly encouraging." Aurora's revenue was ahead of expectations, but "we would argue in the details there remains reason for caution," said the analyst. Aurora's Daily Special discount brand has been a big part of its sales, but the company is now aiming to pivot more to premium flower brands in a re-set of its top line. "For this re-set to be deemed a success we would need to see any lost sales from Daily Special being more than offset (in a growing market) by sales elsewhere. This is not the case," said Bennett. In flower, Daily Special sales declined by C$5mn ($3.9 million) while the rest of its flower business was roughly flat, while in extracts, ex CBD in the US, it only added sales of $2.2 million, "not overly impressive given the extent of Aurora's 2.0 portfolio," he said. Jefferies rates Aurora as hold with a C$6.90 price target. Aurora shares were down 9% premarket and are down 57% in the year to date, while the Cannabis ETF has fallen 9.6% and the S&P 500 has gained 9.9%.
2:18 a.m. Nov. 9, 2020 - By Ciara Linnane
Canopy Growth shares jump 13% premarket after cannabis company posts smaller-than-expected lossCanopy Growth Corp.'s U.S.-listed shares soared 13% in premarket trade Monday, after the Canadian cannabis company posted a smaller-than-expected loss for its fiscal second quarter and revenue that beat estimates. Smith Falls, Ontario-based Canopy posted a loss of C$32.06 million ($24.6 million), or 9 cents a share, for the quarter to Sept. 30, after income of C$258.9 million, or 25 cents a share, in the year-earlier period. Revenue net of excise taxes came to C$135.3 million, up from C$85.6 million. The FactSet consensus was for a loss of 37 cents a share and revenue of C$118.1 million. "We saw another quarter of improvement in our operating expense ratio while our marketing and R&D investments are being re-directed to drive sales," Chief Financial Officer Mike Lee said in a statement. "Importantly, our end-to-end review has identified cost savings opportunities in the range of $150-$200 million across cost of goods sold, general and administrative expenses, and inventory, and efforts are underway to quickly capture value." Shares have gained 11% in the year to date, while the Cannabis ETF has fallen 10% and the S&P 500 has gained 8.6%.
6:52 a.m. Nov. 7, 2020 - By Ciara Linnane
Cannabis stocks rally for a second straight day with Aurora gaining 66% as Biden’s gains raise reform hopes ‘While Tuesday night’s election did not clearly show who America thinks should lead the nation, it did make clear that we are united on replacing our country’s archaic cannabis laws,’ says CCPCCannabis stocks enjoyed a second straight day of strong gains Friday, led by Aurora Cannabis Inc. with a 66% surge, on growing expectations that Democrat Joe Biden will win the 2020 presidential race and lead a reform effort that will put a spark under the still nascent sector.
3:16 a.m. Nov. 3, 2020 - By Ciara Linnane
Bausch Health tops revenue estimates and reiterates guidanceBausch Health Cos. Inc. shares rose 5% in premarket trade Tuesday, after the drug company's better-than-expected revenue offset weaker-than-expected profit. Bausch, the former Valeant, posted net income of $71 million, or 20 cents a share, for the quarter, after a loss of $49 million, or 14 cents a share, in the year-earlier period. Revenue fell to $2.138 billion from $2.209 billion. The FactSet consensus was for EPS of $1.02 and revenue of $2.032 billion. The numbers, "clearly demonstrate our recovery from the COVID-19 pandemic is in progress," said Chief Executive Joseph Papa. Revenue at the company's core Bausch + Lomb/International segment fell 1% to $1.169 billion, and accounted for about 55% of the overall revenue. Salix sales fell 10% to $496 million, while Ortho Dermatologics sales fell 2% to $144 million. The company is still expecting full-year revenue to range from $7.80 billion to $8.00 billion, compared with a FactSet consensus of $7.9 billion. Shares have fallen 42% in the year to date, while the S&P 500 has gained 2.5%.
6:03 a.m. Oct. 29, 2020 - By Tomi Kilgore
Curaleaf's stock surges after MKM analyst turns bullish, citing optimism over 'legislative opportunities'The U.S.-listed shares of Curaleaf Holdings Inc. surged 4.5% in morning trading Thursday, to buck the weakness in the broader cannabis market, after MKM Partners analyst Bill Kirk turned bullish, saying the Massachusetts-based medical marijuana company is "poised to inflect operationally at the same time that legislative opportunities may come to fruition." Kirk raised his rating to buy, after being at neutral since November, while raising his price target on the Canada-listed stock to C$14 from C$10. "While Senate and Presidential polling momentum continues in favor of pro-cannabis candidates, Curaleaf has strong exposure to even more salient state-specific legislation (recreational cannabis ballot initiatives in New Jersey and Arizona)," Kirk wrote in a note to clients. "In addition to legislative changes that could dramatically increase Curaleaf's addressable market, increased production capacity in Florida should meet existing demand and double sales in their biggest state." The stock's rally comes while the ETFMG Alternative Harvest ETF falls 0.9% in morning trading. Year to date, Curaleaf's stock has rallied 42.3%, while the MJ ETF has dropped 37.7% and the S&P 500 has edged up 1.7%.
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