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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index gained 14.13 points to 190.66 Friday, ending the week up 6.09 points. The Canadian Securities Exchange Composite Index rose 10.07 points to 396.42 Friday, up 1.78 points on the week. Much of the S&P/TSX Cannabis Index's gains from today were spurred by Canopy Growth Corp. (WEED), which rose $4.10 to $29.98 on 9.67 million shares after beating revenue estimates and reducing operating expenses. Canopy had net revenue of $123-million in Q3, up from $76.6-million in Q2. Analysts polled by Bloomberg had expected net revenue of $105-million. The company also reduced its operating expenses from $269-million in Q2 to $231-million in Q3. As a result, Canopy reduced its adjusted EBITDA loss of $92-million in Q3 (compared with Bloomberg analysts' expectation of a $110-million loss), down from $156-million in Q2.
Canopy's increase in net revenue comes one day after both Aurora Cannabis Inc. (ACB: $2.06) and The Supreme Cannabis Company Inc. (FIRE: $0.37, more on Supreme below) reported declines in their quarter-to-quarter revenues. Cannaccord Genuity analyst Matt Bottomley wrote in a note to clients on Friday, "We were particularly encouraged to see Canopy print a solid sequential increase in its recreational sales in a period where many of its peers are anticipated to see flat to lower revenues."
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