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Canopy Growth Rises after Earnings Beat

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Canopy Growth rises

Canopy Growth (WEED) (CGC) was trending higher by 5% when markets opened. The company reported its earnings late last evening at around 8:45 PM EST.

The company reported strong top-line sales growth with a gross revenue of 97.7 million Canadian dollars. However, after absorbing the impact of excise tax, the company reported net sales of 83 million Canadian dollars. Nonetheless, this was almost a 283% increase year-over-year in sales.

Read Analyzing Canopy Growth’s Q3 Results for more information.

Aurora Cannabis’s (ACB) sales were also impacted as a result of a newly introduced excise tax in Canada.

The company, however, reported a decline in margins year-over-year and reported wider operating losses during the same period. Canopy Growth’s upfront investment costs for future revenue weighed down the bottom line.

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Other cannabis stocks that were trading higher early in the morning include Aphria (APHA), which gained about 6.7%, and Cronos Group (CRON), which was also trading nearly 2.1% higher. Aurora Cannabis was trading about 0.47% higher in the early morning session, while CannTrust (CNTTF) was up 1%. Tilray (TLRY) was also up by 0.6%.

It appears that the overall cannabis sector has taken Canopy Growth’s earnings in a positive light. The Horizons Marijuana Life Sciences ETF (HMMJ) gained about 3% at the open.

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