Canopy Growth, a Canadian medical marijuana company, reported its fiscal Q4 financial results this week.
For the quarter, the company saw a net loss of 54.4 million Canadian dollars, or 31 cents a share. This was a lot bigger than the loss of $12 million, or 8 cents, in the year ago quarter.
Revenue at 22.8 million Canadian dollars was a rise of 56% compared to the year ago period.
“With the largest inventory and capacity today, Canopy Growth is uniquely positioned to go beyond our current commitments to provincial agencies and cannabis retailers in order to successfully open the regulated recreational cannabis market in Canada as a producer of choice nationwide,” remarked company Chairman and CEO Bruce Linton.
Cowen analyst Vivien Azer had an “outperform” on the stock as the company went into earnings. She remarked, “We continue to like WEED’s positioning in the Canadian adult use market, and we think recent capacity additions support future demand fulfillment and provide scale advantages vs. competitors.”
She added, “We are raising our FY2020 revenue estimates to C$681 million with a target price of C$48, implying target EV / revenue multiple of ~12.5x.”
Disclaimer: We have no position in Canopy Growth Corp. (NYSE: CGC) and have not been compensated for this article.
