CGC - Is Canopy Growth About to Shoot Higher Because of Its Partner's Outperformance?
Let's face facts; it's been a rough slog for Canopy Growth (NASDAQ: CGC) investors over the years. In the company's home of Canada, licensing troubles, heavy competition, high taxes, and a raft of other problems have plunged many marijuana companies into the red and largely kept them there. Canopy Growth is no exception.
But the company has a big, muscular partner behind it -- strategic investor Constellation Brands (NYSE: STZ) . The alcoholic beverages company just delivered an estimates-trouncing quarter, and it doesn't look like it'll abandon its little Canadian pot-slinging brother anytime soon. Perhaps Constellation's improvements could even have a positive knock-on effect on Canopy Growth's operations.
Constellation's first quarter of fiscal 2023 earnings release was impressive in a number of ways. Firstly, thanks to double-digit increases in beer sales, the company managed to lift its revenue 17% higher on a year-over-year basis to nearly $2.4 billion. Non- GAAP (adjusted) net income also improved at a double-digit rate, advancing by 10% to just under $504 million.
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Is Canopy Growth About to Shoot Higher Because of Its Partner's Outperformance?