Canopy Growth Corporation Reports Q4 Loss, Misses Revenue Estimates

Canopy Growth Corporation (CGC - Free Report) came out with a quarterly loss of $1.16 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $0.67 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -286.67%. A quarter ago, it was expected that this company would post a loss of $0.36 per share when it actually produced a loss of $0.27, delivering a surprise of 25%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Canopy Growth Corporation, which belongs to the Zacks Medical - Products industry, posted revenues of $80.46 million for the quarter ended March 2020, missing the Zacks Consensus Estimate by 14.99%. This compares to year-ago revenues of $70.74 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Canopy Growth Corporation shares have added about 3% since the beginning of the year versus the S&P 500's decline of -6.2%.

What's Next for Canopy Growth Corporation?

While Canopy Growth Corporation has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

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