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What's in Store for Canopy Growth (CGC) in Q4 Earnings?
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Canopy Growth Corporation (CGC - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on May 27, before the opening bell.
In the third quarter of fiscal 2022, the company reported a loss of 22 cents, surpassing the Zacks Consensus Estimate by 4.35%.
The company missed estimates in three of the trailing four quarters and surpassed the same on one occasion, the average negative surprise being 103.3%.
Let's take a look at how things have shaped up prior to this announcement.
Factors at Play
Canopy Growth is likely to have experienced strong and sustained demand for legal cannabis products in the growing Canadian recreational cannabis market. CGC has been maintaining market share leadership in the premium flower category. We expect the trend to have continued in the to-be-reported quarter on product development, which has been leading to faster product delivery to the market. The developments are expected to have contributed to the company’s top line in the to-be-reported quarter.
The company has also been growing its market share in vapes and edibles categories. Within edibles, the expansion of GCC's premium product offerings across the Deep Space brand with the introduction of Deep Space XPRESS gummies in the Canadian market is likely to have contributed to the fiscal fourth-quarter performance.
Canopy Growth has been undertaking several efforts to ramp up its U.S. cannabidiol (“CBD”) business. Per a February 2022 update, Canopy's CBD product portfolio is available in brick-and-mortar and e-commerce sites, covering 33 states in the United States, including Martha Stewart CBD. Per the company, Storz & Bickel and BioSteel have been registering strong performances in the United States. This is expected to have continued throughout the fiscal fourth quarter on the back of strong demand for the Volcano Onyx and Mighty+ vaporizers.
Canopy Growth’s acquired business, BioSteel Sports Nutrition Inc., has also been registering robust performances for the past few quarters, driven by the launch of BioSteel ready-to-drink beverages in the United States.
On the fiscal third-quarter earnings call, the company stated that it was witnessing continued momentum in the BioSteel business with the signing of retail authorizations by Albertsons, Rite Aid, Food Lion, Stop & Shop, and Sheetz and more than 20 additional authorizations across grocery, convenience and drug chains. We expect the development to have positively contributed to the company’s fiscal fourth-quarter top line.
In March 2022, the company announced the expansion and flavor innovation within its growing CBD portfolio — Tropical Medley CBD Wellness Gummies. The product offering features three brand-new flavors inspired by the lush fruits of tropical destinations — Alphonso Mango, Coconut, and Pineapple.
In February 2022, the company announced an extension of the Ace Valley brand portfolio, bringing two beverage and hard candy formats to market. Marking the brand’s first-ever beverage offerings, Daylight and Moonwave are occasion-based THC and CBD-infused drinks designed to help consumers start and end their days. These developments are expected to have contributed significantly to the fiscal fourth-quarter performance on the back of strong customer adoption.
Estimate Picture
The Zacks Consensus Estimate for fourth-quarter revenues of $103.7 million suggests a fall of 11.6% from the prior-year quarter’s reported figure.
The consensus mark for loss is pegged at 24 cents per share for the fiscal fourth quarter, narrower than the reported loss of 66 cents per share in the year-ago quarter.
What Our Model Suggests
Our proven model conclusively predicts an earnings beat for Canopy Growth this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Canopy Growth has an Earnings ESP of +21.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Some better-ranked stocks in the broader medical space, which have announced quarterly results, are Medpace Holdings, Inc. (MEDP - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Masimo Corporation (MASI - Free Report) .
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
AMN Healthcare, currently sporting a Zacks Rank #1, reported first-quarter 2022 adjusted EPS of $3.49, which beat the Zacks Consensus Estimate by 7.4%. Revenues of $1.55 billion outpaced the consensus mark by 3.7%.
AMN Healthcare has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 15.6%.
Masimo reported first-quarter 2022 adjusted EPS of 93 cents, which surpassed the Zacks Consensus Estimate by 1.1%. Revenues of $304.2 million outpaced the Zacks Consensus Estimate by 3.6%. It currently carries a Zacks Rank #2.
Masimo has an earnings yield of 3.4% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average surprise being 4.4%.
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What's in Store for Canopy Growth (CGC) in Q4 Earnings?
Canopy Growth Corporation (CGC - Free Report) is scheduled to report fourth-quarter fiscal 2022 results on May 27, before the opening bell.
In the third quarter of fiscal 2022, the company reported a loss of 22 cents, surpassing the Zacks Consensus Estimate by 4.35%.
The company missed estimates in three of the trailing four quarters and surpassed the same on one occasion, the average negative surprise being 103.3%.
Let's take a look at how things have shaped up prior to this announcement.
Factors at Play
Canopy Growth is likely to have experienced strong and sustained demand for legal cannabis products in the growing Canadian recreational cannabis market. CGC has been maintaining market share leadership in the premium flower category. We expect the trend to have continued in the to-be-reported quarter on product development, which has been leading to faster product delivery to the market. The developments are expected to have contributed to the company’s top line in the to-be-reported quarter.
The company has also been growing its market share in vapes and edibles categories. Within edibles, the expansion of GCC's premium product offerings across the Deep Space brand with the introduction of Deep Space XPRESS gummies in the Canadian market is likely to have contributed to the fiscal fourth-quarter performance.
Canopy Growth Corporation Price and EPS Surprise
Canopy Growth has been undertaking several efforts to ramp up its U.S. cannabidiol (“CBD”) business. Per a February 2022 update, Canopy's CBD product portfolio is available in brick-and-mortar and e-commerce sites, covering 33 states in the United States, including Martha Stewart CBD. Per the company, Storz & Bickel and BioSteel have been registering strong performances in the United States. This is expected to have continued throughout the fiscal fourth quarter on the back of strong demand for the Volcano Onyx and Mighty+ vaporizers.
Canopy Growth’s acquired business, BioSteel Sports Nutrition Inc., has also been registering robust performances for the past few quarters, driven by the launch of BioSteel ready-to-drink beverages in the United States.
On the fiscal third-quarter earnings call, the company stated that it was witnessing continued momentum in the BioSteel business with the signing of retail authorizations by Albertsons, Rite Aid, Food Lion, Stop & Shop, and Sheetz and more than 20 additional authorizations across grocery, convenience and drug chains. We expect the development to have positively contributed to the company’s fiscal fourth-quarter top line.
In March 2022, the company announced the expansion and flavor innovation within its growing CBD portfolio — Tropical Medley CBD Wellness Gummies. The product offering features three brand-new flavors inspired by the lush fruits of tropical destinations — Alphonso Mango, Coconut, and Pineapple.
In February 2022, the company announced an extension of the Ace Valley brand portfolio, bringing two beverage and hard candy formats to market. Marking the brand’s first-ever beverage offerings, Daylight and Moonwave are occasion-based THC and CBD-infused drinks designed to help consumers start and end their days. These developments are expected to have contributed significantly to the fiscal fourth-quarter performance on the back of strong customer adoption.
Estimate Picture
The Zacks Consensus Estimate for fourth-quarter revenues of $103.7 million suggests a fall of 11.6% from the prior-year quarter’s reported figure.
The consensus mark for loss is pegged at 24 cents per share for the fiscal fourth quarter, narrower than the reported loss of 66 cents per share in the year-ago quarter.
What Our Model Suggests
Our proven model conclusively predicts an earnings beat for Canopy Growth this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Canopy Growth has an Earnings ESP of +21.92%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Some better-ranked stocks in the broader medical space, which have announced quarterly results, are Medpace Holdings, Inc. (MEDP - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Masimo Corporation (MASI - Free Report) .
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
AMN Healthcare, currently sporting a Zacks Rank #1, reported first-quarter 2022 adjusted EPS of $3.49, which beat the Zacks Consensus Estimate by 7.4%. Revenues of $1.55 billion outpaced the consensus mark by 3.7%.
AMN Healthcare has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 15.6%.
Masimo reported first-quarter 2022 adjusted EPS of 93 cents, which surpassed the Zacks Consensus Estimate by 1.1%. Revenues of $304.2 million outpaced the Zacks Consensus Estimate by 3.6%. It currently carries a Zacks Rank #2.
Masimo has an earnings yield of 3.4% against the industry’s negative yield. MASI’s earnings surpassed estimates in the trailing four quarters, the average surprise being 4.4%.