Canopy Growth shares jump 13% premarket after cannabis company posts smaller-than-expected loss

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Canopy Growth Corp.’s U.S.-listed shares soared 13% in premarket trade Monday, after the Canadian cannabis company posted a smaller-than-expected loss for its fiscal second quarter and revenue that beat estimates. Smith Falls, Ontario-based Canopy posted a loss of C$32.06 million ($24.6 million), or 9 cents a share, for the quarter to Sept. 30, after income of C$258.9 million, or 25 cents a share, in the year-earlier period. Revenue net of excise taxes came to C$135.3 million, up from C$85.6 million. The FactSet consensus was for a loss of 37 cents a share and revenue of C$118.1 million. “We saw another quarter of improvement in our operating expense ratio while our marketing and R&D investments are being re-directed to drive sales,” Chief Financial Officer Mike Lee said in a statement. “Importantly, our end-to-end review has identified cost savings opportunities in the range of $150-$200 million across cost of goods sold, general and administrative expenses, and inventory, and efforts are underway to quickly capture value.” Shares have gained 11% in the year to date, while the Cannabis ETF has fallen 10% and the S&P 500 has gained 8.6%.
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