Is Canopy Still the Top Canadian Cannabis Company After Earnings?
Last week, some of the top Canadian pot companies released their quarterly earnings reports, and every single one of them performed worse than expected. Leading this mediocre showing that horrified investors was Canopy Growth (NYSE: CGC).
Canopy's net revenues of 76.6 million Canadian dollars declined 15% sequentially and missed analyst estimates by some margin, and the company reported a net loss per share of CA$1.08. To be fair, Canopy's bottom line was impacted by a CA$32.7 million restructuring charge: After originally overestimating the demand for its oils and softgels products, the company has been modifying its portfolio since last quarter -- both in terms of the products it offers in these segments and their respective prices -- to better reflect the market demand and avoid the risk of oversupply.
But even setting that aside, the company's overall performance was bad, at best. Given its lackluster performance during the last quarter (and for that matter, the prior quarter too), it might be time to consider whether Canopy still deserves to be considered the top dog in the Canadian cannabis market.
Source Fool.com
