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Key Takeaways
- Canopy Growth Corporation shares dropped Friday after reporting worse-than-expected earnings.
- Revenues came in 13% lower than a year earlier and net loss widened substantially.
- Canadian adult-use cannabis sales for the company decreased, offset by an increase in medical cannabis sales
Canopy Growth Corporation (CGC) shares dropped Friday after the company’s first-quarter fiscal 2025 earnings fell significantly short of expectations.
The cannabis producer’s revenue of 66.2 million Canadian dollars ($48.2 million) came in 13% lower than a year earlier and missed analysts’ projections of C$72.1 million. Its net loss widened to C$1.60 per share from C$0.69 per share, more than double the consensus per share loss.
Canadian adult-use cannabis sales for the company decreased 22% to C$18.9 million, mostly offset by a 20% increase in medical cannabis sales to C$18.8 million.
Looking ahead, Canopy is setting its sights on the second half of the fiscal year.
“The fundamentals of our business continue to strengthen, and our focus on profitable revenue generation is yielding clear results as we set the stage for growth in the second half of fiscal 2025,” said Canopy CEO David Klein.
Shares of the Ontario-based company fell 7.95% in trading Friday, although they’re up roughly 32% year-to-date.
Read the original article on Investopedia.