Earnings season is starting to heat up for the cannabis industry and we expect the market to be highly focused on how these businesses are performing.

During the last year, several leading North American cannabis companies have put a major emphasis on becoming profitable businesses. Unfortunately, most of these firms have not been able to generate a profit and Wall Street has responded by lowering price target and ratings on companies their analysts cover.

Today, we highlighted 3 Canadian Licensed Producers (LPs) which will report quarterly financial results in the near future. We consider these to be some of the better-known Canadian cannabis companies and wanted to provide some information on how each firm has performed since the most recent earnings report.

Tilray Brands Inc. (Nasdaq: TLRY) (TSX: TLRY)

On April 6th, Tilray reported third quarter financial results and the post-earnings trend has been bearish. Since reporting third quarter earnings, the Canadian LP has lost more than half of its value and has been unable to find a strong support level.

Although momentum (as measured by the relative strength index or RSI) is no longer at oversold levels, the stock has been unable to break out of the current trading range and we continue to be cautious with the near-term outlook.

Canopy Growth Corporation (Nasdaq: CGC) (TSX: WEED)

In late May, Canopy Growth reported fourth quarter earnings and recorded a more than C$500 million net loss. The Canadian cannabis producer reported 25% lower revenue on a year-over-year basis.

Canopy Growth’s post-earnings performance is eerily similar to Tilray Brands and we find this to be significant. The Canadian LP also lost more than half of its value since its fourth quarter earnings report and is trading at oversold levels. Canopy Growth’s management team is highly focused on becoming profitable and we will monitor how the team has been executing on this when it reports quarterly earnings next month.

Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB)

The last few years have been very challenging for Aurora Cannabis and we continue to have a cautious outlook on the business. From closing facilities to replacing the management team, the Canadian cannabis producer has been trying to turn the business around.

Although Aurora Cannabis has not performed as badly as Canopy Growth or Tilray Brands since the prior earnings report, the stock has fallen more than 40% since then. During the last month, Aurora Cannabis has come off its lows and has rallied more than 10%. While we continue to have a cautious outlook on the Canadian LP, we are favorable on the recent performance and will monitor the trend from here.

If you are interested in learning more about North American cannabis companies which are going to report quarterly earnings soon, please send an email to support@technical420.com with the subject “Cannabis Earnings Season Updates” to be added to our distribution list.

Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.