Hexo Surprises With 1Q Sales Beat; Top Analyst Sticks To Hold
Hexo Corp. generated better-than-expected revenues and posted a
lower-than-feared EBITDA loss in the first quarter. Shares of the
Canada-based cannabis company advanced 2.9% in Tuesday’s pre-market
session, after closing flat on Monday. Hexo’s (HEXO) 1Q revenues of
C$29.5 million surged 103% year-over-year and came ahead of the
Street’s estimates of C$14.5 million. Meanwhile, 1Q revenues grew
9% sequentially, driven by an “8% growth in adult-use cannabis
sales and 54% growth in adult-use beverage,” the company said. The
company reported an adjusted EBITDA loss of C$0.42 million in 1Q,
compared to a loss of C$3.25 million in the year-ago period.
Analysts had forecasted a loss of C$2.