HEXO Corp (TSX: HEXO; NYSE: HEXO) rescheduled its fourth-quarter earnings results to October 28 in light of the financing and additional time required to finalize its year-end filings. The company has previously slated to release its results on Thursday.
The Quebec, Canada-based cannabis company has been struggling to achieve the expected product sales during the quarter as well as the delay in retail store openings in the major markets.
The results continue to be unpredictable due to the limitation of the availability and types of cannabis derivative products. This was due to the regulatory uncertainty across the pan-Canadian system and jurisdictional decisions.
The company experienced slower than expected store rollouts, early signs of pricing pressure, and a delay in government approval for cannabis derivative products. For improving the growth and market share, Hexo needs to find funding partners for paying on its new facilities and acquisition plans.
The stock has fallen over 63% in the year so far and over 45% in the past three months. The investors remained concerned about the future of the company after the abrupt resignation of its finance chief Michael Monahan on October 4.
The traders, on the other hand, believe that the downfall could have happened due to the withdrawal of the fiscal 2020 outlook arising from a slowdown in the Canadian cannabis market in the second half. This also includes analysts’ downgrade on future concerns and weakness in the cannabis sector due to the vaping-related deaths.
For the third quarter, the company reported a wider loss as higher operating expenses and taxes weighed down the top-line growth. The adult-use sales accounted for 91% of total revenue. It produced 9,804 kg of dried cannabis, an increase of 98% over the previous quarter. It also completed the first harvests in the new 1 million sq. ft. expansion as it continues ramping up to an annual production capacity of 150,000 kg of dried cannabis.
The market experts believe that the stock could rise higher in the future after seeing satisfactory earnings numbers in the upcoming quarters. There still remained hopes of any future developments at the company’s earnings call for the stock to regain the upward track.