The title of the cannabis producer HEXO falls by 22% on the stock market
The action of cannabis producer HEXO of Gatineau fell heavily on the stock market, Thursday, losing more than 22%.
HEXO warned investors that its sales forecast for the fourth quarter of this year would be well below expectations.
The cannabis producer also said its revenue forecast for the year 2020 was also out of reach.
On the Toronto Stock Exchange, HEXO ended the session down $ 1.12 to $ 3.76.
Last Friday, HEXO announced that its Chief Financial Officer was leaving after being hired just four months ago.
HEXO, the largest supplier to the Quebec Cannabis Company (SQDC), expects its fourth quarter revenues to be 40% lower than expected.
Net sales are expected to range from $ 14.5 million to $ 16.5 million for the quarter ended July 31.
"Revenues for the fourth quarter are below expectations, mainly due to a lower than expected product sales rate," said HEXO CEO Sébastien St-Laurent. Louis.
The latter did not want to grant an interview, wishing to discuss with analysts at the annual presentation of the results of HEXO, October 24.
For 2019, HEXO is expected to report income of between $ 46.5 million and $ 48.5 million.
Half less than expected
For 2020, revenue results should be reduced to around $ 235 million, instead of the expected $ 400 million, believes Bank of America analyst Merrill Lynch Christopher Carey.
Bank of America revised Monday its target price on HEXO, from US $ 9 to US $ 4.
Desjardins Capital Markets analyst John Chu has also decided to downgrade his target price on the HEXO stock from $ 14 to $ 12.50 in the next year.
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The summons is just a reminder that you need to be clear about what you are doing and be prepared for the consequences of your actions.
传票只是提醒您:您要清楚自己在做什么,并且要为自己行为的后果,做好心理准备.
If you support my work, you can give me some upvote on the comment of the summons.
如果支持我的工作,可以给我这个传票留言进行点赞.
If you find my mistake, you can give me a valid upvote (0.02sbd) on this comment. I will arrange a time to review or provide relevant evidence as soon as possible.
如果发现我判断错误,可以给我有效点赞(0.02SBD),我会安排时间,尽快复核或提供相关证据.
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