Canopy Growth (NASDAQ:CGC) Posts Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Canopy Growth (NASDAQ:CGC) released its quarterly earnings data on Friday. The company reported ($0.10) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.07), Zacks reports. Canopy Growth had a negative net margin of 113.21% and a negative return on equity of 61.97%.

Here are the key takeaways from Canopy Growth’s conference call:

• Canopy ended Q3 with CAD 371 million in cash and a CAD 146 million net cash position, and completed a post-quarter CAD 150 million recapitalization that extended debt maturities to 2031, improving near-term liquidity and financing flexibility.
• The proposed acquisition of MTL Cannabis is expected to be accretive, adding high-quality flower supply, profitable domestic medical operations, and a stronger Quebec adult-use footprint that should boost gross margins and international supply capability.
• Canopy reported its narrowest Adjusted EBITDA loss to date (CAD 3 million) after identifying CAD 29 million of annualized cost savings, and reiterated a target of achieving positive Adjusted EBITDA in fiscal 2027.
• Canadian operations showed momentum with medical net revenue up 15% year‑over‑year (sixth consecutive quarter of growth) and adult‑use revenue up 8% year‑over‑year, led by pre-rolls and vapes.
• A proposed reduction in the Veterans Reimbursement Program from CAD 8/g to CAD 6/g (potentially effective April 1) represents a meaningful headwind to medical margins, prompting preemptive efficiency measures.

Canopy Growth Price Performance

Canopy Growth stock traded up $0.04 during trading on Friday, reaching $1.12. The company had a trading volume of 9,640,440 shares, compared to its average volume of 14,874,340. The firm has a market capitalization of $410.83 million, a PE ratio of -0.57 and a beta of 0.56. The firm’s 50-day simple moving average is $1.25 and its 200 day simple moving average is $1.29. The company has a debt-to-equity ratio of 0.31, a quick ratio of 4.23 and a current ratio of 5.50. Canopy Growth has a 1-year low of $0.77 and a 1-year high of $2.38.

Institutional Trading of Canopy Growth

Several institutional investors have recently modified their holdings of the stock. Boothbay Fund Management LLC purchased a new stake in shares of Canopy Growth during the second quarter worth about $30,000. Sender Co & Partners Inc. purchased a new stake in shares of Canopy Growth during the third quarter worth approximately $63,000. Osaic Holdings Inc. lifted its holdings in Canopy Growth by 77.6% in the 2nd quarter. Osaic Holdings Inc. now owns 75,335 shares of the company’s stock valued at $92,000 after purchasing an additional 32,927 shares in the last quarter. Bank of America Corp DE lifted its holdings in Canopy Growth by 111.3% in the 3rd quarter. Bank of America Corp DE now owns 87,095 shares of the company’s stock valued at $127,000 after purchasing an additional 45,871 shares in the last quarter. Finally, CIBC Private Wealth Group LLC boosted its stake in Canopy Growth by 35,753.8% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 100,032 shares of the company’s stock worth $146,000 after purchasing an additional 99,753 shares during the last quarter. Institutional investors and hedge funds own 3.33% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on CGC. Alliance Global Partners reissued a “neutral” rating on shares of Canopy Growth in a report on Monday, December 15th. Wall Street Zen raised Canopy Growth from a “sell” rating to a “hold” rating in a report on Saturday, November 8th. Benchmark upgraded Canopy Growth from a “sell” rating to a “hold” rating in a research report on Monday, November 10th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Canopy Growth in a report on Wednesday, January 21st. Three investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce”.

About Canopy Growth

Canopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets.

The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments.