After Canada's marijuana legalization last year, Canopy Growth’s pot sales jumped 360%. When the world’s largest pot company reports earnings this week, that number may be less than 40%.
After recreational marijuana sales were legalized last year, Canopy Growth Corp.’s pot sales jumped 360%. When the world’s largest pot company reports a fresher crop of results this week, that number may be less than 40%.
Cannabis companies rarely provide the sorts of precise forecasts investors have come to expect from other industries, but Canopy Growth executives will likely offer qualitative commentary on what to expect from the pot producer. One critical area is the company’s plan for its edibles rollout. But the money they got from Constellation may be more important in the long-term than the bottling knowledge, according to one analyst.
Revenue: Net of excise taxes, analysts expect Canopy Growth to bank C$90.6 million in fourth-quarter revenue, up from C$22.8 million in the year-ago quarter, according to FactSet. Sequentially, in the fiscal third quarter, and the first nearly full three months of legalized adult use, Canopy Growth revenue amounted to C$83 million.
What analysts are saying Bennett at Jefferies wrote in a note to clients that Canopy Growth’s purchase of the right to acquire Acreage was a “big positive” for the company. Bennett wrote that for the Canadian licensed producers to become large cap companies, they will need significant U.S. operations — which if they wait until changes to U.S. federal law, could be too late.
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