We expect this strength to get reflected in second-quarter fiscal 2020 results, scheduled for release on Nov 14, after market close.
Click here to know how the company is likely to perform in the quarter to be reported.
Canopy Growth is spending on its outside Canada business to tap into its huge market potential globally. In recent times, the company acquired a number of European companies to extend and fortify its production footprint in the region that holds great promises. Strong top-line contributions from these buyouts deserve special mention in the company’s upcoming earnings results.
In 2019, this Zacks Rank #3 (Hold) stock bought Germany-based C3, which is Europe’s largest cannabinoid-based pharmaceuticals company with five approved cannabinoid therapies to its credit. The transaction enabled Canopy Growth to provide European physicians with the knowledge and therapies drawn from synthetic and naturally-derived cannabinoid-based medicines.
In April this year, the company also purchased Spain-based licensed cannabis producer Cáñamo y Fibras Naturales, S.L. (Cafina). As one of the three Spanish companies authorized to cultivate, distribute and export cannabis containing more than 0.2% of tetrahydrocannabinol (THC) for medicinal and research purpose, Cafina spurred tremendous growth prospects for Canopy Growth.
In May 2019, the company again made a strategic move in Europe with the acquisition of England-based This Works. The integration of this natural skincare and sleep solutions provider helped Canopy Growth consolidate its ability to penetrate the unexplored markets and introduce cannabidiol or CBD-based offerings that align with a well-established 34-plus country channel.
Further in June, the company took over Saskatoon-based bio-product extractor KeyLeaf Life Sciences to support the company’s U.S. cannabidiol (CBD) expansion.
All the above acquisitions might have significantly favored the company’s top line in the fiscal second quarter.
Additionally, of late, the company made some substantial infrastructure-related improvements for higher product flow into the European markets including Germany, Poland, the Czech Republic and the United Kingdom. These initiatives include a considerable increase in pre-pack and fulfilment capacity to ensure rapid product flow into the pharmacy channel. We expect positive outcomes of these efforts in the to-be-reported results.
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings in the to-be-reported quarter.
Merus N.V. MRUS has an Earnings ESP of 10.00% and a Zacks Rank #3 (Hold).
Prevail Therapeutics Inc. PRVL has an Earnings ESP of 4.48% and a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Click to get this free report Merus N.V. (MRUS) : Free Stock Analysis Report Eyenovia, Inc. (EYEN) : Free Stock Analysis Report Prevail Therapeutics Inc. (PRVL) : Free Stock Analysis Report Canopy Growth Corporation (CGC) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research” data-reactid=”44″ type=”text”>Click to get this free report Merus N.V. (MRUS) : Free Stock Analysis Report Eyenovia, Inc. (EYEN) : Free Stock Analysis Report Prevail Therapeutics Inc. (PRVL) : Free Stock Analysis Report Canopy Growth Corporation (CGC) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research