WATCH: Miss Q & A 2018 Juliana Charms The Press With Witty, Insightful Answers

Canopy Growth Corp shares closed Friday's session up 3.06% to $47.53 after the Canadian pot company reported a 283% increase in fiscal third-quarter revenue to C$83.1 million.

While the company failed to meet analysts' bottom-line expectations due to an accounting quirk that chopped C$185.8 million off of the company's profit, investors seem to be forgiving of the miss, pushing the stock higher Friday.

However, the third quarter was not all roses for the company, according to Cowen analyst Vivien Azer, who wrote Friday that she is concerned about the company's margins.

"WEED net revenues of $83 mm were up 256% sequentially, and in line with consensus, which is a relief given the meaningful miss last quarter. The offset, however, seems to be an absence of production efficiencies as cash COGS (cost of goods sold) / gram continued to climb, and was $5.11 in the quarter, a far cry from the $2-3 we see from WEED's peers," Azer wrote.

WEED is Canopy Growth's stock symbol on the Toronto Stock Exchange.

Additionally, while the company's operating loss shrunk in the quarter, it was still sizable, according to Azer. Research and development costs more than doubled to $5 million from $2 million in the quarter, which helped lead to an EBITDA loss of $75 million, wider than the loss of $58 million seen in the previous quarter.

Azer has an outperform rating and C$82 price target, which represents a 34% upside from the stock's previous closing price in Toronto of C$61.28.

This article was originally published by > TheStreet

Source : https://www.msn.com/en-us/news/money/canopy-rises-on-q3-revenue-beat-but-heres-why-you-should-watch-out-for-margins/ar-BBTD13z

Terima Kasih Telah Mengunjungi Website Ini
Check Out Our New Products !
close
Canopy Rises on Q3 Revenue Beat but Here's Why You Should Watch Out for Margins
Vice Ganda reveals superb prizes for the Miss Q and A 2019
10 players to watch in college baseball
Quickfire Q&A with Anna Ross: ones to watch and ‘hundreds’ of embarrassing moments
Antonio Brown says trade request is not about a new contract, addresses his future in Twitter Q&A
PBS President Paula Kerger on replacing Charlie Rose, keeping Ken Burns and streaming
Oaxis Timepiece Review
Windies vs England on Sky Sports Cricket: How to watch every Test and ODI
Whirpool stock lower after appliances maker reports a Q4 miss
Tesla stock falls after company's Q4 earnings miss
[LIMITED STOCK!] Related eBay Products