Canopy Growth weighs on Constellation Brands
Early on January 9, Constellation Brands reported its third-quarter earnings. The company lowered its EPS forecast to $9.2–$9.3 from $9.6–$9.75. The forecast was lower due to interest expense costs of $55 million related to Constellation Brands’ investments in Canopy Growth (WEED) (CGC)—a Canadian cannabis company (MJ). However, Constellation Brands is still reviewing the impact of its investment in Canopy Growth.
Aurora Cannabis (ACB) got a target price cut from Eight Capital. The target price was cut from 17 Canadian dollars to 15 Canadian dollars. Wall Street analysts expect Tilray’s (TLRY) fourth-quarter losses to expand to a consensus of $0.19 per share. Tilray had a consensus recommendation of a “hold,” while Aurora Cannabis had a consensus recommendation of a “buy” on the stock.
In the pre-market session, Constellation Brands was trading nearly 11.7% lower, while Canopy Growth rose 3.1%. Aurora Cannabis rose 1.8%, while Tilray fell by 67 basis points. Aphria (APHA) rose nearly 2%, while Cronos Group (CRON) rose by 32 basis points in the pre-market session.
To learn more, read US Cannabis Sector Bets Are Getting Bolder Every Day.