Earlier this week, Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) plunged lower and recorded a double-digit percentage decline after releasing second quarter financial results.

Although the market’s reaction to Cronos’ second quarter results was one of the ugliest responses we have seen this quarter, we have noticed a similar trend for both large and small scale Canadian Licensed Producers (LPs).

Today, we want to issue an update on five Canadian LPs that recently reported or are getting ready to report quarterly financial results. So far, the post-earnings trading pattern has been volatile and we believe our readers should be aware of the trend.

Cronos Drops on Earnings

Cronos Group is a large-scale Canadian LP which reported a smaller-than-expected net loss for the second quarter. Although the net loss was much lower on a year-over-year basis, the company missed revenue expectations and we continue to have a cautious near-term outlook.

Bright Spot = As of the end of the second quarter, the Canadian LP reported to have approx. $790 million (USD) of cash and cash equivalents which we consider to be a bright spot for the business.

What to Expect From Aurora’s Earnings Report?

Next month, Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB) will report fourth quarter and full year financial results. We do not expect the company to report stronger-than-expected revenue growth and will plan to analyze the level of revenue that is derived from North American or the European Union (EU).

Bright Spot = During the last quarter, the Canadian LP received an EU good manufacturing practices (GMP) certification for its German facility and we consider Aurora Cannabis’ leverage to the EU to be a bright spot of the business.

Can Canopy Growth Bounce Back?

Last week, Canopy Growth Corporation (Nasdaq: CGC) (TSX: WEED) plunged lower after reporting a C$2 billion net loss in its quarterly earnings report. Although most of the net loss is related to an impairment charge, the size of the net loss caught the attention of the market…for the wrong reason. Canopy Growth continues to record volatile price movements after the earnings report and we will continue to monitor the trend from here.

Bright Spot = At the end of the quarter, the Canadian LP reported to have more than C$1 billion of cash and we consider this to be an attractive aspect of the story.

Organigram: Growing Faster Than Its Peers but is that Enough?

Organigram Holdings Inc. (Nasdaq: OGI) (TSX: OGI) has been under pressure with the rest of the Canadian cannabis sector and was one of the first LPs to report earnings. During the period, the company reported a smaller net loss on a year-over-year basis and generated a record amount of revenue (according to the company.

Bright Spot = The management expects to report revenue growth in the current quarter and we are especially bullish on this trend while its peers are under more pressure.

Tilray is Leading the EU Cannabis Market

In late July, Tilray Brands Inc. (Nasdaq: TLRY) (TSX: TLRY) reported strong growth on several key metrics in its fourth quarter earnings report. Although the company reported a $450+ million net loss, $395 million was related to a non-cash impairment charge that was primarily related to inventory and goodwill.

Bright Spot = During the quarter, Tilray reported that international sales increased by more than 200% when compared to the same period last year. The management team said the business is leading the legal cannabis movement in the EU and has 20% market share in Germany and this is market we are highly bullish on.

If you are interested in learning about Canadian cannabis companies that are nearing an inflection point, please send an email to support@technical420.com with the subject “Canadian Cannabis Operators to be Aware of” to be added to our distribution list.