The price of HEXO Corp. (NYSE: HEXO) soared today by a percentage of 3.47% to the current price of $7.76. Previously the market closed at $7.5.Investors are always on the lookout for companies that have the potential to get a beat on earnings season. HEXO stock is one of those companies.
HEXO Corp is an innovative CBD product company
HEXO Corp is a Cannabis company that has also won a consumer award for its packaged goods. The company brings new products to serve the global cannabis market. This Global cannabis market is specifically for the adult-use for which the HEXO Corp. supplies through its retail name UP cannabis, Original Stash brands, and HEXO medical cannabis.
HEXO Corp combines acquisition news announcement with timely product launch
HEXO achieved a positive adjusted EBITDA right in this quarter. This is the seventh consecutive achievement of EBITDA improvement by HEXO Corp. HEXO stock has had a premium product mix due to the relaunch of UP Cannabis. Similar to UP Cannabis, HEXO Corp. has announced recently to acquire Zenabis which is sure to boost the growth of the HEXO Corp.m internationally.
By acquiring Zenabis, it will put the corporation in the top three Canadian adult-use Cannabis sales.
HEXO Corp’s outstanding interim quarterly report
Let us look at the Interim quarterly financial results.
HEXO made an astounding 94% increase in its net revenue compared to its previous year. The increase amounts to a $32.8 million which is 12% improvement from its previous quarter.
The company has recently launched CBD beverages in Colorado which are specifically labeled as “powered by HEXO”. The non-beverage Canadian Adult-use revenue increased by 72% compared to the prior year quarter.
HEXO Corp.’s fundamentals are outperforming its own previous records. The HEXO stock has been constant winner in keeping its 1st position for market share in Quebec. The packaged goods cannabis business has been delivering increased sales revenue in the rest of the Canada by 49%.
Furthermore, HEXO stocks news also brings up the positive announcement of complete dismissal of class action suit. The federal US securities class action was pending in the US district court.
HEXO’s success is unhampered by the pandemic
The plethora of positive news about the company’s operation does not stop here. Another interesting thing claimed by HEXO is that due to the company’s success, it has never opted for stimulus and subsidy package from the Canadian Government. This is an impressive feat because it means that whatever cash and cash-related operational flow it has recorded is one that is un-stimulated by the government unlike that of its competitors.
The fundamental performance of the company suggests that it is one of the prime Canadian cannabis companies. The recent acquisition of Zenabis global shows that HEXO stock is ambitiously expanding and will continue to do so with the current pace of its performance.