Why HEXO Stock Dropped Monday Morning
HEXO (NYSE: HEXO) has been actively growing its business through acquisitions recently, but the Canadian cannabis company didn't thrill investors with its fiscal third-quarter financial report today. As of 10:35 a.m. EDT on Monday, HEXO shares were down almost 9%.
Total revenue for the quarter rose slightly over the prior-year period, but was notably lower sequentially versus the prior quarter, which ended Jan. 31. Compared to that previous three-month period, sales dropped by 31%. The company said the drop was primarily "due to a decline in adult-use non-beverage sales of $5.2M [in Canadian dollars] in Quebec related to strain cultivation decisions made by the company and production issues relating to hash." For the nine-month period ended April 30, 2021, however, total sales rose 58.5% compared to the same period one year ago.
Source Fool.com
