Will Canopy Growth Corporation (CGC) Report Negative Earnings Next Week? What You Should Know

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].