Why HEXO Shares Are Jumping Today
Shares of HEXO (NYSE: HEXO) were up 11.4% as of 9:52 a.m. EDT on Thursday, with the Canadian cannabis producer reporting its fiscal 2020 third-quarter results before the market open.
HEXO announced Q3 net revenue of 22.1 million in Canadian dollars ($16.5 million), up 30% quarter over quarter and higher than the CA$20.3 million expected by analysts. The company posted a Q3 net loss of CA$19.5 million, or CA$0.07 per share. This was wider than the Q2 net loss of CA$7.8 million, or CA$0.04 per share. It also missed the consensus analysts' estimate of a net loss of CA$0.05 per share.
Investors obviously are more excited about HEXO's revenue surprise than its bottom-line miss. That's understandable. The company's wider net loss in Q3 stemmed primarily from a smaller unrealized gain on changes in fair value of biological assets compared with the previous quarter. HEXO's adjusted EBITDA, which improved from the second quarter, is a better measure of the company's progress.
Source Fool.com
