HEXO Stock: Why Investors in Cannabis Play Hexo Are Not Very Stoked Today

Investors in cannabis company Hexo (NASDAQ:HEXO) are slamming the stock following the release of its most recent earnings report.

A marijuana  plant representing HEXO Stock.

Source: Shutterstock

The biggest disappointment for investors is the company’s revenue of $39.9 million. That wasn’t able to match up to Wall Street’s estimate of $45.4 million for the period. This is despite it rising 70% from the same time last year.

On the other hand, adjusted losses per share came in a 9 cents. That’s just barely better than the -10 cents per share that analysts were expecting. There’s no comparative earnings per share data from the same time last year, reports CTInsider.

To go along with these results, Hexo announced a new strategic plan today. Scott Cooper, president and CEO of the company, had this to say about it.

“We are taking immediate steps through our new strategic plan, The Path Forward, to strengthen our capital position, improve operations, accelerate organic growth and complete our transformation to be cash flow positive from operations within the next four quarters.”

It’s worth pointing out that 2021 has been a horrible year for HEXO stock. The company started it out with shares at $4.15 each and they rose to over $10 per share during February. However, it’s been all downhill since then.

As of this writing, shares of HEXO stock are trading below $1 each. It’s worth noting that this comes after the company enacted a four-for-one reverse stock split in December 2020 to maintain its listing on the New York Stock Exchange.

HEXO stock is down 8.4% as of Tuesday morning and is down 77.8% since the start of the year.

There’s more stock market news for investors to dive into below!

We’ve got all the latest stock coverage you need for Tuesday! Among that is Tesla (NASDAQ:TSLA) accepting Dogecoin (CCC:DOGE-USD), corrected study results sending Galera Therapeutics (NASDAQ:GRTX) higher, as well as possible merger news for SeaChange International (NASDAQ:SEAC). You can get up to speed on this at the links below!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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