Canopy Growth (NYSE: CGC) reported a loss of CAD 0.98 per share on revenues of CAD 94.1 million in the fourth quarter, which missed analysts’ predictions. Analysts had expected the marijuana company to post a narrower loss of CAD 0.23 per share on revenue of CAD 99.23 million in Q4.
However, investors mostly remained stoic towards the broad earnings miss as most of the expenses incurred were primarily the costs associated with operational expansion.
Also, on the same day, the US Congress debated an amendment that would stop the Justice Department from interfering in state marijuana laws, including the use of weed for recreational purpose. This coincided with the Canadian company getting shareholder approval to acquire Acreage Holdings, which would help in its expansion of hemp-based products in the US.
CGC shares were up 0.66% during aftermarket trading on Thursday. The stock has increased 50% in the year-to-date period.
Canopy Growth had earlier expanded its operations to new markets including the UK and Peru, and investors were closely watching its US expansion moves.
On an annual basis, the company reported $226.3 million in sales, which was 191% higher than fiscal 2018. Annual revenues from medical marijuana increased 6% to $78.9 million, while those coming from the new recreational segment was $140.5 million (non-comparable).
Chairman Bruce Linton said, “The third quarter of the year benefitted from months of advanced production while the fourth quarter relied more on efficient throughput and a more automated platform.”