Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) stock plunged Friday a day after the world’s largest pot company posted a wider-than-expected fiscal fourth-quarter loss despite beating revenue estimates.
The Smith Falls, Ontario-based cannabis grower posted a net loss of C$323.4 million, or C$0.98 a share, compared to a loss of C$54.4 million in the year-ago quarter. Much of that loss — more than C$130 million — was on paper, as Canopy had to account for the growth of its stock price in the first three months of the calendar year because of rules governing the company’s convertible debt. However, this still left the company bleeding C$174.5 million.
Wall Street expected Canopy Growth to stay in the red, but with a with a much smaller loss of C$95.2 million, or C$0.25 per share.
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Investors punished canopy shares, sending them down 4.7% to US$41.64 in New York in premarket trading.
Meanwhile, revenue rose to C$94.1 million from C$22.8 million in the year-ago period, and was up sequentially from C$83 million in the third quarter. This topped analysts' estimates which called for Canopy Growth to bank C$90.6 million in 4Q revenue.
Canopy sold 9,326 kilograms of cannabis during the quarter. That was down from 10,102 kgs in the prior quarter.
Contact Uttara Choudhury at [email protected]