Earnings Hits and Misses: Canopy Growth, Cloudera

Here’s a quick look at a couple of earnings reports that were released before Tuesday’s opening bell. Markets were closed Monday for the Memorial Day holiday.

With about a month left in the current earnings season, the number of reports issued every day has dropped from a few hundred to a few dozen. After markets close Tuesday, we are expecting earnings reports from Ambarella, Hewlett Packard Enterprise and Zoom Video Communications. Here’s our preview of those reports.

Canopy Growth

Cannabis producer Canopy Growth Corp. (NYSE: CGC) beat S&P Capital IQ’s consensus revenue estimate of $150 million by 11.6% to post sales of $167.4 million but missed badly on the consensus loss. For the company’s fiscal third quarter, Canopy Growth reported a loss per share of $1.85, worse than the estimate of $1.61.

CEO David Klein said the company “transformed” into a consumer packaged goods model during its 2021 fiscal year and the company is “starting to see strong momentum across all of our key businesses and remain firmly focused on capitalizing on U.S. opportunities in Fiscal 2022.”

Shares traded down about 5.4% at $24.67 early Tuesday, in a 52-week range of $13.83 to $56.50. The average daily trading volume is about 3.6 million shares.


Enterprise analytics and data management company Cloudera Inc. (NYSE: CLDR) beat estimates on both the top and bottom lines. Earnings per share of $0.12 were 50% better than the consensus estimate of $0.08. Revenue came in 3.2% above consensus, at $224.3 million.

The big news, of course, is that the company has agreed to be acquired by private equity firms KKR and Clayton, Dubilier & Rice (CDR) in an all-cash transaction valued at about $5.3 billion. Shareholders will receive $16 per share, a premium of around 24.4% to Friday’s closing price of $12.86. Entities associated with Carl Icahn own approximately 18% of Cloudera’s outstanding stock and have agreed to vote in favor of the acquisition.

The KKR-CDR transaction is expected to close in the second half of this year. Cloudera has a 30-day go-shop period expiring July 1 to seek an alternative offer.

Cloudera also announced Tuesday the acquisition of two privately held firms, Datacoral and Cazena, in separate transactions expected to close by the end of July. Financial details were not disclosed.

Shares traded up about 23.7% at $15.90 early Tuesday, in a 52-week range of $9.34 to $19.35. The average daily trading volume is around 4 million shares. Some 31 million shares had traded hands before 10 a.m. ET on Tuesday.

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