Canopy Growth Corp. (NYSE: CGC) reported first-quarter fiscal 2021 results before markets opened Monday. The marijuana grower and distributor posted a net loss per share of C$0.30 (about US$0.22) on net revenue (excluding excise tax) of C$110.42 million (about $82.59 million). In the same period a year ago, the company reported a net loss of C$0.54 on revenue of C$90.48 million. Analysts had estimated a net loss of C$0.43 ($0.32) on sales of C$130.0 million ($73.79 million). The Canadian company is also listed on the Toronto Stock Exchange under the ticker symbol WEED.

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Quarterly results have returned some hope for the cannabis stocks that have been beaten up so badly for the past 18 months. Looking at five pure-play Canada-based cannabis stocks, all are down between 50% and 95% between October 2018 and last Friday. Canopy Growth was down by about 66% during that period.

Canopy Growth reported a 22% jump in net revenue although adjusted gross margin dipped by 13% (1,300 basis points) and adjusted net loss decreased by 34%. The decline in gross margin was attributed to “lower production output as well as manufacturing variances and inventory adjustments.” The net loss improvement was attributed to higher revenue and lower SG&A expenses.

When Canopy Growth reported fourth-quarter 2020 results in May, the company withdrew earlier guidance for the 2021 fiscal year. Analysts have a consensus estimate for a per-share loss of C$0.36 ($0.27) in the September quarter on sales totaling C$110.9 million ($83 million). For the full year, analysts are looking for a net loss of C$1.52 ($1.14) per share and revenue of C$504.42 million ($377.50 million).

Canopy Growth stock traded up by about 12% early Monday, at $18.59 in a 52-week range of $9.00 to $34.34. The consensus price target on the stock is C$22.99 ($17.21).

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