Earnings season fails to excite cannabis investors over last five trading days

In the wake of a Cronos Group quarterly report, most Canadian companies’ share prices took a tumble.

earnings season five trading days quarterly report

Photo by Thought Catalogue/Unsplash

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The Canadian weed business has entered earnings season. However, that hasn’t boosted the value of the companies’ shares—so far. On August 6, Cronos Group reported a whopping $107.7-million quarterly loss. As a result, its shares declined by 15.9 percent over the last five trading days, closing at $7.52 in Toronto.

This came a week after Aphria reported net loss of $98.8 million in its previous quarter. Over the past five trading days, Aphria shares dipped 9.1 percent, ending the week at $5.99 in Toronto.

Next up, on Monday (August 10), Canopy Growth Corporation and Tilray will deliver their quarterly earnings reports.

In advance of this, analysts have predicted that Tilray will lose US$0.27 per share over the three-month period.

In the previous quarter, the Nanaimo-based licensed producer fell far short of analysts’ expectations by posting a US$1.73 per share loss. Analysts anticipated, on average, a loss of just US$0.44 per share.

As a result, that depressed Tilray’s stock price in after-hours trading on May 11.

This week, Tilray shares experienced a roller-coaster ride. They opened on Monday (August) at US$7.40 on NASDAQ. The following day, they climbed to US$8.70 before closing on Friday (August 7) at US$7.46.

Like Tilray, Canopy Growth fell far short of analysts’ predictions in May during the last earnings season.

Collectively, they forecast a loss of US$0.30 per share. The company ended up losing US$1.16 per share.

On Friday, Canopy Growth shares closed at $22.28 in Toronto. That marked a 10.5 percent decline over five trading days.

Other companies’ shares declined in advance of Tilray and Canopy Growth earnings season reports

Meanwhile, investors in a fifth large Canadian cannabis company also suffered a loss, albeit more minor than most. Aurora Cannabis stock fell 2.8 percent over the previous five days of trading. It closed at $13.65 on Friday.

Other weed stocks also fell back over five trading days. They included Organigram Holdings (down 3.5 percent to $1.67), Village Farms International (down 6.7 percent to $8.02), and Aleafia Health (down 11.9 percent to $0.59).

However, one exception was Hexo Corp. Its shares held the line over the week at US$0.69.

And a U.S.-based weed company, Curaleaf Holdings, continued its impressive rise in recent weeks. Over the past five trading days, Curaleaf shares rose 2.9 percent to reach $11.52 on the Canadian Securities Exchange.

WeedMD does deal with Mary’s Medicinals; share price stable over five trading days

In other cannabis news, WeedMD signed an exclusive licensing agreement to produce Mary’s Medicinals’ line of wellness products.

The Toronto-based WeedMD has granted certain directors deferred share units in lieu of cash compensation for the first two quarters of 2020.

According to a company announcement, it’s authorized the distribution of 356,434 share units.

WeedMD closed after five trading days at $0.36 on the Canadian Venture Exchange. That was down a penny from the opening price on July 31.

Charlie Smith

I'm the editor of the Georgia Straight newspaper in Vancouver, as well as a CannCentral contributor.

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