Canopy Growth (TSX:WEED) (NYSE:CGC) is the biggest cannabis company in the industry, so there was a lot of anticipation about its quarterly results. The results proved to be encouraging, with Canopy beating expectations and CGC stock soared by as much as 22% on the back of the performance.
Revenue Soars 62%
This is the biggest gain for Canopy stock since 2018, and it seems probable that the stock is going to be back in focus thanks to this performance. The company’s net revenue for the fiscal third-quarter soared by as much as 62% sequentially to hit C$123.8 million, which beat analysts’ expectations of C$105.4 million by a significant margin.
The net losses for the quarter stood at C$124.2 million, which works out to losses of 35 cents a share. However, analysts were expecting a loss of 52 cents a share, so this could be considered another win for Canopy Growth shareholders.
The most valuable cannabis company in the world by market cap also reported an 8% rise in gross cannabis revenue. In addition to that, Canopy came out of this quarter as the cannabis firm with the highest market share.
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CGC stock is now up by 19% at $23.23.
According to the earnings report, Canopy Growth managed to account for as much as 22% of the total cannabis sales in Canada in the quarter. The EBITDA loss for the quarter stood at C$91.7 million, which is, again, lower than the analysts’ estimates of C$110 million. It was also lower than the previous quarter’s EBITDA loss by as much as C$64 million.
Finally, Canopy Growth announced that it had cut its operating expenses by as much as 14% in the quarter. That cut in expenses resulted in the company reporting a gross margin of 34%, which reflects a remarkable turnaround from a gross margin of negative 13% in the quarter before this one.
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Featured image: Canva
