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Canopy Growth Sets Q1 Release Date

The Motley Fool logo The Motley Fool 7/30/2019 Eric Volkman

Canopy Growth(NYSE: CGC) has fixed the date it will unveil its latest quarterly results. The company announced today that its fiscal 2020 Q1 figures will be released after the market closes on Wednesday, Aug. 14. The following morning, it will host a conference call with CEO Mark Zekulin and Mike Lee.

For the quarter, the 10 analysts tracked by Yahoo! Finance who cover the stock are collectively expecting a per-share net loss of $0.38, on revenue just above $109 million.

a close up of a flower: Marijuana leaves and bottles of derivative product© Getty Images Marijuana leaves and bottles of derivative product

By comparison, in Q1 of fiscal 2019 Canopy Growth posted slightly under $26 million Canadian (US$20 million) on the top line, and a net shortfall of CA$91 million, or CA$0.40 per share ($69 million and $0.30, respectively).

Looking back at the most recently reported quarter, which was Q4 of fiscal 2019, net revenue more than quadrupled on a year-over-year basis to CA$94 million ($71 million). The caveat to that double-digit increase is that it came not from organic revenue, but basically from the company's recent acquisition of vaporizer specialist Storz & Bickel. Meanwhile, net loss was CA$323 million, or CA$0.98 per share ($246 million and $0.74, respectively). 

Over the past four reported quarters, Canopy Growth's bottom-line deficits have been deeper than analyst expectations. At times the difference has been considerable -- in the company's Q2 of fiscal 2019, its net loss per share was the equivalent of $0.89; analysts had only been anticipating a shortfall of $0.15. In the aforementioned Q4 of the same year, the collective estimate was for a $0.26-per-share net loss.

However, since the marijuana industry is at a very early stage, many companies involved in it are spending significant amounts of capital attempting to build scale.

Canopy Growth has done so effectively, becoming the world's largest marijuana stock by market capitalization in the process. It has engineered numerous acquisitions; in addition to Storz & Bickel, the company also made a deal to purchase U.S. grower and dispensary licensee Acreage Holdings, although that arrangement is conditional upon a revision of federal cannabis regulations.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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