Canopy Growth Corp. (CGC) was getting smoked in morning trading on Wednesday, Nov. 14, falling more than 10% after fiscal second-quarter revenue came in below analysts' estimates.
The Canadian cannabis company reported a 33% increase in revenue to C$23.3 million. Canopy Growth also reported a loss of $1 a share on an adjusted basis after losing 1 cent a share a year ago.
Analysts were expecting the company to report revenue of C$60 million.
"With substantial product inventories on hand, new product formats coming to market as planned, a captive sales force driving increased demand through physical retail stores and increasing internal and channel efficiencies, we believe based on market conditions today that we will attain significant and sustainable market share of the Canadian recreational market," said Bruce Linton, Canopy Growth's chairman and CEO..
The company's oils and softgel capsules accounted for 34% and 18% of overall sales, respectively. But the company reported a drop in average selling price to $6.70 per gram from $6.79 per gram in the previous quarter.
Canopy is the third pot stock to release its earnings results this week after Tilray Inc. (TLRY) and Cronos Group Corp. (CGC) did so earlier this week.