Home Cannabis Analysts Revised Canopy Growth's Q3 Estimates

Analysts Revised Canopy Growth’s Q3 Estimates

Getting ready for big earnings

Canopy Growth (WEED) (CGC) is scheduled to announce its third-quarter earnings on February 14 after the market closes. The company will hold a conference call on February 15 at 8:30 AM EST.

Canopy Growth's Revenue 2019-02-13


Canopy Growth is expected to report 85 million Canadian dollars in sales, which is expected to grow nearly four times year-over-year. The estimates were adjusted lower from 87.9 million Canadian dollars since our pre-earnings update was published last week. Canopy Growth beat analysts’ revenue estimates in one of the last four quarters.

The gross margins are expected to be 41.3%, which was higher than 40% in our update last week. The lower revenue estimates explain why the gross margin estimates increased. The margins were 57.7% in the third quarter of 2017 and 28.2% in the previous quarter.

The company is expected to report a loss per share of 0.16 Canadian dollars, which was slightly more than 0.15 Canadian dollars per share in our update last week.

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Earlier this week, Aurora Cannabis (ACB) reported its earnings and beat the top-line estimates. However, the company missed the bottom-line estimates. To learn more, read Aurora Cannabis: Key Takeaways from Its Q2 Earnings.

On February 13, Canopy Growth and Aurora Cannabis each rose 1%. Among Canopy Growth’s peers (MJ), Aphria (APHA) rose 1.3%, while Cronos Group (CRON) rose ~3.8%.

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