Why Pyxus International Stock Rose Over 33% after Its Q3 Results



Third-quarter performance

Pyxus International (PYX) posted its fiscal 2019 third-quarter earnings results after the market closed on February 11.

In the quarter, which ended on December 31, the company posted EPS of -$0.56 on revenue of $524.5 million. Year-over-year, the company’s revenue rose 9.8%, while its EPS fell drastically from $9.83 in the third quarter of fiscal 2018.

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Stock performance

The optimism surrounding Pyxus International’s “One Tomorrow” transformation strategy appears to have increased investors’ confidence, leading to a rise in the company’s stock price. At the close of market on February 12, Pyxus stock stood at $23.12, a rise of 33.2% from its previous day’s closing price. Despite the rise, Pyxus International was trading at a discount of 55.9% to its 52-week high of $52.43.

During the company’s earnings call, its management stated that its subsidiary, FIGR, would be expanding its operations to reach an annual production capacity of more than 100,000 kilograms of cannabis products. In the e-liquids category, management added that Bantam would be launching 72 new SKUs in the coming months. The company’s management also stated that its industrial hemp joint venture, Criticality, made significant progress in the CBD (cannabidiol) hemp business with the launch of Korent, a new line of CBD oil products, in December 2018.

Year-to-date stock performance

Pyxus International has started 2019 on a strong note, with its stock price rising 94.9%. During the same period, its peers Altria Group (MO) and Philip Morris International (PM) have returned 0.5%, and 20.7%, respectively. The Consumer Staples Select Sector SPDR ETF (XLP), which has 8.4% of its holdings in tobacco and cigarette companies, has risen 7.0% YTD.

Next, let’s look at Pyxus International’s revenue in detail.


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