HEXO Corp (TSX: HEXO; NYSE: HEXO) is slated to report its earnings results for the first quarter of 2020 on Monday, December 16, before the market opens. The top line will be benefited by cannabis sales volume as demand continues to grow for dried cannabis and cannabis oil.
However, the bottom line is likely to be hurt by costs and expenses associated with the significant increase to the scale of its operations as well as additional harvests from its greenhouses. The stock-based compensation expense, due to higher cannabis market value, could also impact the bottom line results.
In the next ten years, the global cannabis market is expected to reach $250 billion. In the near future, 70% of the global market share will be held by a few companies and Hexo is likely to be included in the list due to its strength in the cannabis yield. Also, the company continues to explore other opportunities for analogous ventures to introduce into the cannabis market.
Analysts expect the company to post a loss of CAD0.12 per share on revenue of CAD15.75 million for the first quarter. In comparison, during the previous year quarter, Hexo posted a loss of CAD0.07 per share on revenue of CAD5.67 million.
For the fourth quarter, Hexo reported a wider loss due to higher costs and expenses despite higher revenue. The top line was driven by an 18% increase in adult-use cannabis revenue that partially offset the 12% decrease in medical cannabis revenue.
Sales volume surged 45% to 4,009 kg from 2,759 kg equivalents sold in the third quarter of 2018. The company is looking for ways to expand nationally on a larger scale after establishing a strong presence within its home market of Quebec.
For the first quarter of 2020, HEXO expects revenue to be in the range of CAD14 million to CAD18 million. The company estimates to achieve positive adjusted EBITDA in calendar 2020.
Intuitive Surgical (NASDAQ: ISRG) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The robotic product's manufacturer reported fourth-quarter revenue of $1.33 billion, up 4% year-over-year. Meanwhile,
Seagate Technology plc (NASDAQ: STX) reported second-quarter 2021 earnings results after the closing bell on Thursday. Revenue increased to $2.62 billion from $2.69 billion last year. Analysts had expected revenue
IBM (NYSE: IBM) reported its fourth quarter 2020 earnings results today. Revenue fell 6% year-over-year to $20.4 billion. GAAP net income fell over 60% to $1.3 billion, or $1.51 per