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Canopy Growth Corporation CGC is set to release third-quarter fiscal 2026 results on Feb. 6, before the opening bell.
The Canada-based cannabis operator posted loss per share of 1 cent in the last reported quarter, which surpassed the Zacks Consensus Estimate by 90.9%. The company beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 200.19%.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $50.6 million, indicating a decrease of 5.3% from the year-ago reported figure.
The Zacks Consensus Estimate for loss per share is pinned at 3 cents for the fiscal third quarter, indicating an increase of 96.1% from the year-ago reported figure.
Fiscal-third quarter estimates for loss per share have remained constant at 3 cents in the past 30 days.
Let’s briefly review the company’s performance leading up to the announcement.
Canopy’s cannabis operations span both recreational and medical markets, and results from the previous quarter reflected encouraging momentum across both segments. Cannabis revenues registered growth, supported by contributions from adult-use and medical cannabis markets in Canada. We expect this positive trajectory to have continued into the fiscal third quarter as well.
In Canada, adult-use revenue growth might have been driven by strong consumer uptake of infused pre-roll joints (PRJ) and the recent launch of All-In-One (AIO) vape products under the Tweed and 7ACRES brands. Meanwhile, medical cannabis sales in Canada might have benefited from higher insured patient enrollments, increased average order sizes and an expanded product portfolio under the Spectrum Therapeutics brand.
International cannabis revenues might have continued to face pressure from persistent supply-chain and execution challenges in Europe, similar to trends observed in the previous quarter. However, the company has initiated a focused turnaround strategy, emphasizing enhanced day-to-day operational oversight, reconfiguration of the end-to-end route to market, and a transition back to internally produced Canadian GMP flower. These corrective actions appear to have begun positively influencing performance in the to-be-reported quarter.
Storz & Bickel likely encountered a challenging year-over-year comparison due to elevated sales levels in the prior year, alongside broader pressures on consumer discretionary spending. Despite these headwinds, the company reported strong initial global consumer reception for its newly launched VEAZY vaporizer.
Canopy Growth Corporation price-eps-surprise | Canopy Growth Corporation Quote
During the quarter, the company executed several notable strategic and product initiatives. These included the launch of Claybourne Gassers, a new range of All-in-One (AIO) vaporizers featuring liquid diamond formulations. In October, the Spectrum Therapeutics portfolio in Australia was expanded with the introduction of new softgel capsule offerings, further strengthening the company’s medical cannabis presence in the region. Additionally, Canopy entered into a definitive arrangement agreement to acquire all issued and outstanding common shares of MTL Cannabis Corp., underscoring its continued focus on portfolio optimization and market consolidation.
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see.
Earnings ESP: Canopy has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around:
Veracyte VCYT has an Earnings ESP of +7.98% and a Zacks Rank #1 at present. The company is expected to release fourth-quarter 2025 results soon.
VCYT’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.12%. Per the Zacks Consensus Estimate, the company’s fourth-quarter EPS may decrease 13.9% from the year-ago quarter’s figure.
Cardinal Health CAH has an Earnings ESP of +2.30% and a Zacks Rank #2 at present. The company is slated to release second-quarter fiscal 2026 results on Feb. 5.
CAH’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 9.36%. The Zacks Consensus Estimate for fiscal second-quarter EPS implies a year-over-year increase of 20.7%.
Merit Medical Systems MMSI currently has an Earnings ESP of +2.09% and a Zacks Rank #2. The company is expected to release fourth-quarter 2025 results soon.
MMSI’s earnings topped estimates in each of the trailing four quarters, the average surprise being 14.1%. The Zacks Consensus Estimate for fourth-quarter EPS implies an increase of 3.2% from the year-ago quarter’s figure.
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This article originally published on Zacks Investment Research (zacks.com).
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