Canopy Growth Earnings: CGC Stock Crashes 19% On Losses, Charges

The company states it expects fiscal 2021 to be a "transition year"

Canopy Growth (NYSE:CGC) earnings for fiscal fourth quarter of 2020 have CGC stock taking a beating on Friday. This comes after reporting revenue of 107.9 million CAD and per-share losses of 3.72 CAD for the quarter.

Canopy Growth Earnings: CGC Stock Crashes 19% On Losses, Charges
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Here are some additional highlights from the most recent Canopy Growth earnings report.

  • Per-share losses were 238.2% worse than losses of 1.10 CAD the previous year.
  • Revenue for the quarter is sitting 15% higher than the 94.05 million CAD reported in the fiscal fourth quarter of 2019.
  • Operating loss of 1.67 billion CAD fell year-over-year from loss of 637.45 million CAD.
  • The Canopy Growth earnings report also includes a net loss of 1.39 billion CAD for the period.
  • That does not look great compared to a loss of 712.03 million during the same time last year.
  • The release also mentions recorded impairment and restructuring costs of 743 million CAD during the quarter.

David Klein,CEO of Canopy Growth, said this about the CGC stock earnings report:

“I am excited to implement our strategy reset and organization redesign over the course of fiscal 2021.  We have a renewed strategic focus and a clear change agenda that is already underway. We are building what we believe is the best cannabis company in the world by putting the consumer at the heart of everything we do and are re-aligning our organization to be faster and more agile.”

Canopy Growth does not include any sort of outlook in its earnings report. However, according to the release, the company expects fiscal 2021 to be a “transition year.” That said, Canopy also states that depending on the effects of the novel coronavirus, they “may provide new metrics by which to measure the Company’s performance in the second half of fiscal 2021.”

CGC stock was down 19% as of Friday afternoon.

Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/05/canopy-growth-earnings-cgc-stock-crashes-misses/.

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