Canopy Growth (WEED) (CGC) fell almost 8% on June 21. The company’s fourth-quarter earnings disappointed the market. While Canopy Growth reported a net sales increase of 13% sequentially, the company sold fewer cannabis kilograms and kilogram equivalent during the fourth quarter.
Canopy Growth sold a total of 9,326 kilograms in the fourth quarter—compared to ~10,102 kilograms of cannabis products in the third quarter. The company sold a total of 7,693 kilograms of recreational products in the fourth quarter—compared to 8,287 kilograms in the third quarter.
Canopy Growth’s results didn’t impress the market. The results created a negative sentiment among Canopy Growth’s peers. On June 21, Innovative Industrial Properties (IIPR) fell ~10.7%, while Tilray (TLRY) fell ~4% after spiking ~9% the previous day. Aurora Cannabis (ACB) fell ~4.3% on June 21.
Despite concerns about the recent results, Canopy Growth continued to strengthen its fundamentals. The company was active in the acquisition space. Acreage Holdings is Canopy Growth’s recent acquisition. To learn more, read Canopy Growth’s Shareholders Approve Acreage Holdings Acquisition.
Canopy Growth discussed its international plans in its fourth-quarter earnings press release and the continued shift to products with higher margins. To learn more, read Canopy Growth Sheds Light on International Medical Development.