June 13, 2019 / 4:04 PM / 4 months ago

BUZZ-Hexo Corp: Falls after 6th-consecutive quarterly revenue miss

** Shares of the Canadian cannabis producer fall 7.3% to C$7.91 - top percentage loser on the Toronto Stock Exchange’s S&P/TSX composite index

** Co reports Q3 2019 total net sales of C$13.02 mln v/s analysts’ avg estimates of C$14 mln, marking the 6th consecutive quarter HEXO has missed estimates - Refinitiv data

** Co’s net loss widened to C$7.75 mln from C$1.97 mln as it spent more to add more plants and scale up its operations

** Co’s soft results were driven by its medical business while the more important adult-use segment tracked in-line with expectations - RBC Dominion Securities Inc

** Brokerage says though HEXO’s results were light relative to estimates, co reiterated its forecast and its international outlook shows promise; rating stock “outperform”

** Out of 14 brokerages, 13 rate the stock “buy” or higher, 1 “hold”; median PT C$10.25

** Separately, HEXO’s affiliate secures medical cannabis license for cultivation, processing & manufacturing facilities in the region of Thessaly, Greece

** Despite today’s losses, stock up ~68% YTD (Reporting by Shanti S Nair in Bengaluru)

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