Getting ready for big earnings
Canopy Growth is expected to report 85 million Canadian dollars in sales, which is expected to grow nearly four times year-over-year. The estimates were adjusted lower from 87.9 million Canadian dollars since our pre-earnings update was published last week. Canopy Growth beat analysts’ revenue estimates in one of the last four quarters.
The gross margins are expected to be 41.3%, which was higher than 40% in our update last week. The lower revenue estimates explain why the gross margin estimates increased. The margins were 57.7% in the third quarter of 2017 and 28.2% in the previous quarter.
The company is expected to report a loss per share of 0.16 Canadian dollars, which was slightly more than 0.15 Canadian dollars per share in our update last week.
Earlier this week, Aurora Cannabis (ACB) reported its earnings and beat the top-line estimates. However, the company missed the bottom-line estimates. To learn more, read Aurora Cannabis: Key Takeaways from Its Q2 Earnings.