Hexo Corp (NYSE:HEXO) provided preliminary results for its fiscal fourth quarter of 2019 and the news has HEXO stock down Thursday.
The Hexo Corp news release about the update mentions that the company is now expecting revenue for its fiscal fourth quarter of the year to range from $14.50 million to $16.50 million. Unfortunately for HEXO stock, the company also said that it now expects fiscal full-year revenue to be between $46.50 million and $48.50 million.
“Fourth quarter revenue is below our expectation and guidance, primarily due to lower than expected product sell through,” Sebastien St-Louis, CEO and cofounder of HEXO Corp, said in a statement. “While we are disappointed with these results, we are making significant changes to our sales and operations strategy to drive future results.”
The bad Hexo Corp news doesn’t just stop with the revenue warning for its fiscal fourth quarter of 2019. The company also notes that it is withdrawing its outlook for fiscal 2020. This is due to increasing unpredictability caused by regulatory uncertainty in Canada and other contributing factors.
Hexo Corp will release its earnings report for its fiscal fourth quarter of 2019 before markets open on Oct. 24, 2019. It will also be holding a conference call at 8:30 a.m. Eastern Time to go over the results.
HEXO stock was down 23% as of Thursday afternoon. The stock is also down 4.17% since the start of the year. It peaked at a price of $8.28 in late April and has been on a downward trend since then.
As of this writing, William White did not hold a position in any of the aforementioned securities.