HEXO stock is declining on Thursday, December 13th, despite the Gatineau, Quebec-based company reporting its financial results for Q1 of 2019.
HEXO Stock Down, but Company Thriving
As one of Canada's lowest-cost producers, and formerly known as The Hydropothecary, HEXO Corp. (TSX:HEXO) is in an attractive position. Its results for the first quarter of the 2019 fiscal year illustrate that. And yet the HEXO stock is down nearly 5%.
The Results
On Thursday, December 13th, HEXO Corp. announced that its gross revenue for the quarter hit $6.7 million. This figure includes $5.2 million in sales of adult-use cannabis. HEXO Corp. also saw a 2% increase over the last quarter in medical cannabis sales. Further, the Canadian cannabis company reported that roughly 1,110,000 total gram equivalents were sold in the quarter, compared to 539,000 in total fiscal 2018.
There were multiple highlights, such as the launch of HEXO Corp.'s new website. CEO Sebastien St-Louis even said the company "hit tremendous milestones in the weeks following the legalization of adult-use cannabis."
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St-Louis then called the company "a world-class organization." That's justifiable, considering $6.7 million in gross revenue in the first quarter of a new fiscal year is an accomplishment.
But the market appears to think otherwise, with HEXO stock trading down.
HEXO Stock Price
According to Yahoo Finance, as of 1:52 PM, HEXO stock is down 4.47%, trading at $4.92, making it a cannabis penny stock. The opening price for the stock was $5.160.
Interestingly, HEXO stock is not the only cannabis stock today to be in the red after announcing positive news. Tilray stock is in a similar boat, though trading down in double-digits.
As the cannabis market often fluctuates, HEXO Corp. could very well shoot up tomorrow, perhaps once its Q1 2019 financial results garner more circulation on the market. The important thing to do is to keep an eye on it in the coming weeks.
Featured Image: Depositphotos/© rrraum
