Canopy Growth rises
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.
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.