Canopy Growth is looking to solidify its U.S. business, thanks to its two acquisitions in the country this year.
Smiths Falls, Ontario-hased Canopy Growth Corp. ($CGC), which has under-delivered relative to expectations in the past few quarters, is scheduled to report its fiscal year 2025 second quarter-results before the market opens on Friday.
Analysts, on average, expect the cannabis company to report a quarterly loss of $0.36 per share, narrower than the year-ago loss of $1.15 per share. The consensus revenue estimate is at $46.8 million, down from $53.51 million reported for the second quarter of last fiscal.
In the first quarter that ended on June 30, 2024, the company reported revenue of $66.2 million, with roughly 57% coming from the Canadian market. About 15% came from international operations and the remainder from the vaporizer brand Storz & Bickel. The Canadian operation drew equal share of revenue from adult-use cannabis and medical cannabis.
Following the second-quarter earnings release, CEO David Klein, who is set to retire by the March quarter, and CFO Judy Hong will host an audio webcast at 10 am ET.
In mid-October, the company said it made early prepayment of $100 million worth of senior secured term loan at a discounted price of $97.5 million. This will result in annualized interest expense savings of $14 million, it added.
Canopy Growth’s U.S. unit completed the acquisition of Wana during the quarter. With the Wana buy and the purchase of a 75% stake in Jetty, a California-based producer of cannabis extracts and clean vape, the company is looking to solidify its U.S. business.
It remains unclear how the incoming Trump administration will regulate the cannabis industry in the U.S. As recently as this week, Florida voted against legalizing recreational marijuana by adults, as the amendment for the same did not achieve the 60% supermajority threshold to pass.
During his campaign, Trump said he would support reclassifying marijuana as a Schedule 3 drug, thereby easing federal restrictions on pot.
In premarket trading, as of 4:33 am ET, Canopy Growth stock was up 1.10% at $4.60.
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