Canopy Growth Earnings Miss
Shares of Canopy Growth (CGC) are selling off in the pre-market after the company reported a C$1.28 billion ($961.32M USD) quarterly loss on their FY Q2 earnings report, released this morning.
Canopy Growth earnings reported a one-time charge of C$1.2 billion relating to the expiration of warrants held by Constellation Brands (STZ), who acquired a large stake in the world’s largest cannabis company last year.
Losses widened to C$3.70 per share, a huge increase from a year earlier when Canopy lost only C$0.40 per share.
However, the massive write off was a one-time charge and the earnings report had some bright spots.
Net revenue increased to C$90.5 million, more than three times than the C$25.9 million that Canopy Growth reported the same time last year and up 27.9% from last quarter.
It’s worth considering that the huge losses were mostly related to the one-time write off of the Constellation warrants. If not for that expense, Canopy’s losses would’ve narrowed to 0.25 per share, down 37.5% from the last report.