As Canopy's Shares Dive Post-Earnings, Analyst Calls Stock 'Bellwether,' Sensitive To Fed Reform News

Canopy Growth Corporation (NASDAQ: CGC), announced its financial results Friday for the second quarter fiscal 2022 ended September 30, revealing a 3% year-over-year decline in net revenue to CA$131 million ($105.4 million).

Total net cannabis revenue increased by 1% over the same period reaching CA$95 million in the second quarter of 2022.

The company also reported an adjusted EBITDA loss of CA$163 million for the same period, representing a CA$77 million wider loss versus the same period of last year, which can be attributed to lower sales, a decline in gross margins, partially offset by the reduction in our total selling, general and administrative expenses.

In addition, Canopy pushed out a positive Adjusted EBITDA target.

The Analyst

Cantor Fitzgerald’s Pablo Zuanic kept a ‘Neutral’ rating and the same price target of $CA18.50 on Canopy’s stock post-earnings release.

The Thesis

“Management had guided for a down quarter, but sales still came in lower than FactSet consensus ($131 million versus $140 million) and adjusted EBITDA of -$76 …

Full story available on Benzinga.com

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