Canopy Growth stock: Earnings hint at end to cannabis slump - Business Insider

Other cannabis firms that have faced a difficult few months also saw their stocks rise, with Aurora Cananbis's stocks up 2%, Tilray up 5.3% and Cronos Group up 4.5%.Canopy said it was the top seller in Canada's adult-use market in the quarter, capturing 22% of the market. Sales to consumers increased 16% quarter-over-quarter, in part due to demand for the company's offerings for flower and pre-rolls, the company said.

"We delivered significant gross improvement in the third quarter driven by stronger revenues and higher capacity utilization," Canopy Growth CFO Mike Lee said in a statement. "Actions taken earlier this year are expected to meaningfully reduce stock-based compensation in FY21, and we have started to implement tighter cost controls across the organization."

The company reported an adjusted Ebitda loss of $91.7 million, which was better than analysts had anticipated on average. Ebitda is a measure of profit that excludes some expenses.The results caught analysts by surprise, especially considering the hefty costs that were expected to come with rolling out products like vapes and edibles, in Canada, some of which have been delayed in their release.

"We had expected only small improvements from the prior quarter, but Canopy is showing a meaningful progression," Bill Kirk, an analyst at MKM Partners wrote in a note following the release of the financial results,On a phone call with investors, Lee said a key priority for the company in 2020 would be to better manage supply and reduce cash burn.

"I am confident that the work we started in January will identify opportunities to reduce operating expenses," he said in his prepared remarks.

The problem is that too many companies were created and not enough pot heads around.... And the fact that it's legal, takes away the 'prohibitive' factor, so people don't care about getting stoned all the time...

Are Twinkie sales a leading indicator?

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

CEOs who mention 'growth' on earnings calls see outsized stock gainsCompanies with CEOs who make liberal use of positive words like 'growth' during earnings calls outperform their counterparts, a study finds. Good example of a framing bias that investors face
Source: CNBC - 🏆 12. / 72 Read more »

Iora Health is set to accelerate growth after major funding round - Business InsiderIora Health nabbed $126 million in funding – positioning it to accelerate growth and increase its investment in its collaborative care platform
Source: BusinessInsider - 🏆 729. / 51 Read more »

Analyzing Tik Tok user growth and usage patterns in 2020 - Business Insider[NEW REPORT] Marketing on TikTok: eMarketer discusses the growth of TikTok around the world and what marketers should know about the short-video app
Source: BusinessInsider - 🏆 729. / 51 Read more »

Microsoft's Jared Spataro addresses criticism about Teams user growth - Business InsiderMicrosoft's head of marketing for its Microsoft 365 defended Team's daily active user numbers, addressing previous criticism that user growth is not organic.
Source: BusinessInsider - 🏆 729. / 51 Read more »