Canopy Growth’s upcoming earnings
Canopy Growth (WEED) (CGC) is scheduled to announce its third-quarter earnings on February 14 after the market closes. The company is one of the most valuable companies in the cannabis sector (MJ). Canopy Growth has been on the top of investors’ investment list. Jim Cramer even called Canopy Growth “the one” due to its partnership with Constellation Brands. Canopy Growth’s earnings will likely be watched closely. Canopy Growth’s earning could serve as a barometer for the cannabis sector.
Canopy Growth is expected to see a meteoric rise in its sales in the upcoming third quarter. The company is expected to report sales of 87.9 million Canadian dollars, which will likely rise ~300% from 21.7 million Canadian dollars in the third quarter of 2017. The company will likely experience the first full quarter of recreational cannabis sales.
Analysts and investors have similar expectations for Tilray (TLRY), Cronos Group (CRON), and HEXO (HEXO) with sales growth driven by recreational cannabis sales. Several media outlets reported that Canada faced a shortage in cannabis supply. We’ll watch to see how the cannabis demand has played out in terms of Canada’s supply and what Canopy Growth expects.
Next, we’ll discuss Canopy Growth’s margins.