Canopy Growth’s share is growing at a slower-than-expected loss, while revenue is falling short

The US-listed shares of Canopy Growth Corp. CGC,
-5.08%
WEED,
-4.41%
hit 6.8% in prime trade on Monday, after the Canada-based cannabis company reported a slower-than-expected fiscal loss from the first quarter, although revenue went up less than forecast. The net loss for the quarter to June 30 is limited to C $ 108.5 million ($ 81.05 million), as 30 cents a share, of C $ 185.9 million, as 54 cents a share, in the year ago . The FactSet consensus was for a loss of 35 cents per share. Revenue grew 22% to C $ 110.5 million ($ 82.47 million), below the FactSet consensus of C $ 112.3 million, as Canadian net recreational revenue fell 11%, while Canadian medical revenue increased 19% . “Following our previously announced restructuring actions, we have substantially reduced our spending and cash burn this quarter, in addition to the key percentage since the beginning of this calendar year by more than 18%,” said Chief Financial Officer Mike Lee. “Our marketing and R&D investments are being re-allocated to high-yield potential programs to support sales.” The stock has fallen 21.2% year to date to Friday, while the Cannabis ETF THCX,
-1.87%
has lost 20.6% and the S&P 500 SPX,
+ 0.06%
has received 3.7%.