Can European Expansion Aid Canopy Growth (CGC) Q1 Earnings?

Canopy Growth Corporation, Stocks by Symbols

We expect this strength to get reflected in first-quarter fiscal 2020 results, which are scheduled for release on Aug 15, 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 growth potential globally. In recent times, the company acquired a number of European companies to extend and fortify its production footprint into one of the most promising regions of the world. The top-line contributions from these buyouts deserve a mention in the company’s results in the fiscal first quarter.

Canopy Growth Corporation Price and EPS Surprise

Canopy Growth Corporation price-eps-surprise | Canopy Growth Corporation Quote

In February, the company bought Germany-based C3, Europe’s largest cannabinoid-based pharmaceuticals company with five approved cannabinoid therapies. The transaction has enabled Canopy Growth to offer European physicians the knowledge and therapies drawn from the gamut of synthetic to naturally-derived cannabinoid-based medicines.

In April, the company 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 potential for Canopy Growth.

In May, the company again made a strategic move in Europe with the purchase of England-based This Works. The integration of this natural skincare and sleep solutions provider has helped Canopy Growth to consolidate its ability to penetrate unexplored markets and introduce cannabidiol or CBD-based offerings that align with a well-established 34-plus country channel.

We expect Canopy Growth to recognize robust revenues from the above three takeovers in the upcoming quarterly release.

Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings in the June quarter.

Aurora Cannabis ACB has an Earnings ESP of +50.00% and a Zacks Rank #2.

Arcturus Therapeutics ARCT has an Earnings ESP of +18.36% and a Zacks Rank of 2.

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Intec Pharma Ltd. (NTEC) : Free Stock Analysis Report
 
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Canopy Growth Corporation (CGC) : Free Stock Analysis Report
 
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Intec Pharma Ltd. (NTEC) : Free Stock Analysis Report
 
Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report
 
Alcobra Ltd. (ARCT) : Free Stock Analysis Report
 
Canopy Growth Corporation (CGC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
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