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Ontario-based cannabis company Canopy Growth Corporation (NASDAQ:CGC) is set to report fourth quarter earnings results on Friday. May 30th, after the closing bell.
Analysts on consensus expect the company to report revenue of C$70.87M, with a non-GAAP loss per share of C$0.20.
Canopy Growth (CGC) announced last month that the company has made an optional early prepayment under its senior secured term loan in an aggregate principal amount equal to $100M at a discounted price of $97.5M. This would result in interest expense savings of about $13M on an annualized basis.
Seeking Alpha’s Quant rating system and sell-side analysts have rated the stock as a HOLD, while SA authors recommend SELL.
Over the last three months, EPS estimates have seen one downward revision, while revenue estimates have seen two downward revisions.
Seeking Alpha analyst Alan Brochstein argued in a recent analysis that Canopy Growth’s business model is broken, with persistent losses, weak leadership, and failed M&A, making its long-term outlook bleak.
“Despite a recent rally, CGC’s valuation remains unattractive compared to peers, trading at a high multiple and only slightly below tangible book value,” the analyst said.
Canopy Growth (CGC) shares have declined more than 36% so far this year, compared to a 0.12% gain in the broader benchmark index.