Shares of Canopy Growth (CGC) - Get Report jumped 20% Friday to $23.70 after the Canadian cannabis company reported a narrower-than-expected fiscal third-quarter loss as revenue topped analysts' estimates.
The company reported a net loss of C$124.2 million ($93.8 million), or 35 cents a share, vs. analysts' expectations of a loss of 52 cents. Meanwhile, revenue rose 49% to C$123.76 million ($93.46 million), topping estimates of C$105 million.
"In Q3 we executed across Canada, in our international markets and in our strategic acquisitions to drive revenue growth," said David Klein, the company’s new CEO. "We have a lot of work to do. We are eager to capitalize on the opportunity to create an unassailable position through a tight focus on the consumer and on critical markets”
Canopy Growth said that it is the market leader in Canada’s recreational cannabis market with an estimated 22% share driven by demand for both premium and value-priced dried flower and pre-rolled joints.
Recreational business-to-business sales increased 8% in the quarter while recreational business-to-customer sales increased 16% sequentially thanks to an 11% increase in same-store sales.
The company was also able to lower total operating expenses by 14% sequentially primarily due to a $20 million reduction in general and administrative expenses and a $31 million decrease in stock-based compensation.
Other cannabis stocks were being lifted by the strong quarter from Canopy Growth.
Tilray (TLRY) - Get Report shares jumped 7.2% to $17.35, while Cronos (CRON) - Get Report climbed 9.5% to $7.52, Aurora (ACB) - Get Report gained 8.5% to $1.60, Aphria (APHA) - Get Report rose 8.9% to $4.52 and Hexo rose 5.9% to $1.34.