The world's biggest cannabis company just gave a huge signal that the cannabis downturn may be coming to an end

Canopy Growth, the world's largest cannabis company, reported financial results for the last three months of 2019 on Friday. The results surprised investors, sending the stock soaring. Canopy said that net revenue jumped 49% to C$123.8 million, and the company lost less money than analysts had feared. Canopy's stocks rose about 12% in trading on Friday, and other cannabis companies rode the wave as well, with Aurora Cananbis's stocks up 2% and Tilray up 5.3%. This comes after a long slump in the industry that saw cannabis stocks slump, mergers fall apart, and over 2,000 job cuts throughout the industry. Click here for more BI Prime stories. Canopy Growth's latest earnings may just be signaling the end of the long downturn in the cannabis industry. In its financial results on Friday, the company reported an unexpected 49% jump in net revenue to C$123.8 million in the last three months of 2019. The company also reported a narrower loss than analysts expected, according to estimates collected by Bloomberg News. That sent the stock soaring about 12% in trading on Friday. The results come as a sign of good news for the industry, especially following Aurora Cannabis's downbeat earnings report on Thursday. The company announced last week cuts to 500 jobs and the departure of longtime CEO Terry Booth. Other cannabis firms that have faced a difficult few months also saw their stocks rise, with Aurora Cananbis's stocks up 2%, Tilray up 5.3% and Cronos Group up 4.5%. Canopy was Canada's top cannabis seller Canopy said it was the top seller in Canada's adult-use market in the quarter, capturing 22% of the market. Sales to consumers increased 16% quarter-over-quarter, in part due to demand for the company's offerings for flower and pre-rolls, the company said. We delivered significant gross improvement in the third quarter driven by stronger revenues and higher capacity utilization, Canopy Growth CFO Mike Lee said in a statement. Actions taken earlier this year are expected to meaningfully reduce stock-based compensation in FY21, and we have started to implement tighter cost controls across the organization. The company reported an adjusted Ebitda loss of $91.7 million, which was better than analysts had anticipated on average. Ebitda is a measure of profit that excludes some expenses. The results were a welcome surprise for the cannabis industry The results caught analysts by surprise, especially considering the hefty costs that were expected to come with rolling out products like vapes and edibles, in Canada, some of which have been delayed in their release. We had expected only small improvements from the prior quarter, but Canopy is showing a meaningful progression, Bill Kirk, an analyst at MKM Partners wrote in a note following the release of the financial results, MarketWatch reported. On a phone call with investors, Lee said a key priority for the company in 2020 would be to better manage supply and reduce cash burn. I am confident that the work we started in January will identify opportunities to reduce operating expenses, he said in his prepared remarks. Featured Digital Health Articles:- Telehealth Industry: Benefits, Services & Examples- Value-Based Care Model: Pay-for-Performance Healthcare- Senior Care & Assisted Living Market Trends- Smart Medical Devices: Wearable Tech in Healthcare- AI in Healthcare- Remote Patient Monitoring Industry: Devices & Market Trends

The world's biggest cannabis company just gave a huge signal that the cannabis downturn may be coming to an end

Read Full story

Insider Inc. is hiring a Content Marketing Producer for BI Prime

All the Twitch Prime gaming deals and special perks you can get on Prime Day 2019

The best Amazon Prime Day 2019 deals Prime members can get starting today

AI IN BANKING: Artificial intelligence could be a near $450 billion opportunity for banks - here are the strategies the winners are using

'I want to be brave like you': A 9-year-old boy asked Pete Buttigieg how to tell people he is gay

A major ally's decision to scrap an important military deal with the US raises the stakes in competition with China

Trump's national security advisor wildly claims Russia wants to elect Bernie Sanders because he'd cut defense spending to fund social programs

Top 3 Biggest Smartphone Trends

The world's biggest cannabis company just gave a huge signal that the cannabis downturn may be coming to an end

SIGN IN WITH

OR PROCEED WITHOUT REGISTRATION