Core Insights - Canopy Growth Corporation reported a strong financial performance for Q4 FY2024, with net revenue increasing by 7% year-over-year to $72.8 million, driven by a 43% increase in Storz & Bickel's revenue and a 16% increase in Canada medical cannabis revenue [1][4][11] - The company achieved significant cost reductions, with the Cost of Goods Sold (COGS) decreasing by 54% in Canada cannabis for FY2024 compared to FY2023, contributing to improved gross margins [6][11] - Canopy Growth has no material debt obligations due until March 2026, enhancing its financial stability and positioning for future growth opportunities [1][3][6] Financial Performance - Q4 FY2024 net revenue was $72.8 million, a 7% increase from Q4 FY2023, with gross margins improving to 21%, an increase of 4,600 basis points year-over-year [4][11] - For FY2024, total net revenue was $297.1 million, a decrease of 11% compared to FY2023, with a reported operating loss from continuing operations of $483.7 million [7][11] - Adjusted EBITDA loss improved by 72% year-over-year to $59 million in FY2024, reflecting successful cost reduction measures and revenue growth [6][11] Market and Product Highlights - The Canada medical cannabis segment achieved its fifth consecutive quarter of revenue growth, with a 16% increase in Q4 FY2024, supported by a larger product assortment [11][12] - International markets cannabis revenue increased by 32% in Q4 FY2024, driven by growth in Germany and Poland [11][12] - Storz & Bickel's revenue surged by 43% in Q4 FY2024, attributed to strong sales of the new Venty portable vaporizer [6][11] Strategic Initiatives - Canopy Growth is focusing on innovation and expanding distribution channels to drive growth in the Canadian cannabis market [10][12] - The company has initiated acquisitions in the U.S. market, including Mountain High Products, Wana Wellness, and Jetty, expected to close in the first half of FY2025 [14][12] - Canopy Growth's strategy includes capitalizing on regulatory developments in Germany and the U.S., positioning itself in attractive cannabis markets globally [3][12]

Medical Intellectual Property Product Safety and Pharmacovigilance Government Regulation On October 17, 2018, the Cannabis Regulations under the Cannabis Act came into force (the "Cannabis Regulations"). The Cannabis Regulations set out the following classes of licenses that authorized activities in relation to cannabis: • a license for cultivation; • a license for processing; • a license for analytical testing; • a license for sale for medical purposes; • a license for research; and • a cannabis drug licen ...

Let's consider a few factors that might have influenced this cannabis major's results in this to-be-reported quarter. However, it's worth examining CGC's performance in the previous quarter first. Surprising History and Estimates at a Glance In the third quarter of fiscal 2024, the company reported a loss of $1.79 compared with the Zacks Consensus Estimate of a loss of 45 cents per share. Canopy Growth missed estimates in three of the trailing four quarters and surpassed in one, the average negative surpris ...

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. The company's stock has climbed by 4.71% in the past month, exceeding the Medical sector's gain of 3.27% and the S&P 500's gain of 4.03%. Market participants will be closely following the financial results of Canopy Growth Corporation in its upc ...

Core Viewpoint - Canopy Growth Corporation (CGC) is anticipated to report a year-over-year increase in earnings despite lower revenues for the quarter ending March 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate indicates a quarterly loss of $0.33 per share, reflecting an 85.7% year-over-year change, while revenues are projected to be $52.71 million, down 18.6% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 58.93% higher in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative Earnings ESP reading can indicate the likelihood of actual earnings deviating from consensus estimates, with a positive reading being a strong predictor of an earnings beat [5][6][7]. Current Earnings ESP and Zacks Rank - For Canopy Growth, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -16.92%, despite the stock holding a Zacks Rank of 2 [10]. Historical Performance - Canopy Growth has only beaten consensus EPS estimates once in the last four quarters, with a significant miss in the last reported quarter where the actual loss was $1.79 compared to an expected loss of $0.45, resulting in a surprise of -297.78% [12][13]. Conclusion - Canopy Growth does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when evaluating the stock ahead of its earnings release [16].

In the latest market close, Canopy Growth Corporation (CGC) reached $10.85, with a -1.36% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.12%. At the same time, the Dow added 0.34%, and the tech-heavy Nasdaq lost 0.07%. Shares of the company witnessed a gain of 40.49% over the previous month, beating the performance of the Medical sector with its gain of 5.73% and the S&P 500's gain of 4.99%. The investment community will be paying close attention to ...

One of the most significant developments regarding the legalization movement came Thursday when President Biden posted a video message regarding his administration's intentions to reclassify marijuana from a Schedule I drug to Schedule III. "Too many lives have been upended because of our failed approach to marijuana," he remarked. On paper, stakeholders of cannabis operator Canopy Growth (NASDAQ:CGC) have plenty of reasons to smile. Anticipation of major marijuana policy shifts culminated in a recent annou ...

Fans of Canopy Growth (NASDAQ:CGC) stock have plenty to look forward to following a recent proposal to reschedule cannabis. This, of course, includes its upcoming first-quarter earnings report, due on May 30. The entire cannabis industry has been on cloud nine of late following the U.S. Department of Justice's (DOJ) historic proposal to move forward with the re-classification of cannabis. Indeed, on Thursday, May 16, the DOJ released a proposal to reclassify the green plant from a Schedule I drug to a Sched ...

Canopy Growth Corporation (CGC) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Shares of this company have returned +40.5% over the past month versus the Zacks S&P 500 composite's +5% change. The Zacks Medical - Products industry, to which Canopy Growth belongs, has gained 3.5% over this period. Now the key question is: Where could the stock be headed in the near term? While m ...

Canopy Growth is part of the Zacks Medical - Products industry. Aurora Cannabis Inc. (ACB) , another stock in the same industry, closed the last trading session 6.9% higher at $7.61. ACB has returned 23% in the past month. Canopy Growth Corporation (CGC) shares ended the last trading session 11% higher at $11. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 52.7% gain over the past four weeks. The surge in Canopy G ...