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.