The world's largest marijuana company craters 22% as recreational pot demand sinks amid coronavirus pandemic (CGC)

• Canopy Growth cratered as much as 22% on Friday after the company reported its fiscal fourth quarter earnings that missed analyst estimates.
• The coronavirus pandemic took a toll on the Canadian marijuana company after it was forced to close its corporate-owned retail stores in mid-March.
• Additionally, the company saw a 14% decline in its direct-to-consumer sales in the quarter, which Canopy attributed to "off peak seasonal demand decline."
• Canopy withdrew its financial guidance for fiscal-year 2021 and took a "mostly non-cash" charge of $743 million Canadian dollars.
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Canopy Growth, the largest marijuana company by market cap, cratered as much as 22% on Friday after reporting earnings that missed analyst estimates.

The company was hit hard by the coronavirus pandemic, having closed its retail stores in mid-March for a number of weeks, in addition to a decline in demand for its recreational products from consumers.

Here are the key numbers:

Revenue: $107.9 million Canadian dollars, representing a 13% decline from its previous quarter.
Earnings per share: -CA$3.72, versus the -CA$0.44 estimate.

Overall, the company lost CA$1.3 billion in the quarter, with roughly half of that loss attributed to a "mostly non-cash" restructuring charge.

Direct-to-consumer sales in the quarter fell 14% due to "off peak seasonal demand decline amid the closure of corporate-owned retail stores late in the quarter in response to COVID-19," according to the company.

Read more: David Herro was the world's best international stock picker for a decade straight. He breaks down 8 stocks he bet on after the coronavirus decimated markets — and 3 he sold.

Product sales to other dispensaries plunged 31% in the quarter as a decline in flower and pre-roll joints sales overpowered the growth in softgels, oil, and cannabis-infused products.

The company is implementing a new strategy reset, in efforts to become "faster and more agile," as demand for its products have been dynamic amid the pandemic, the company said in its earnings release.

Canopy CEO David Klein commented, "... we have taken steps to align our capacity with the current market demand ..."

Canopy is hoping to boost sales via its new cannabis-infused beverages and vape product launches in Canada.

For fiscal year 2020, Canopy's revenue of CA$399 million was up 76% year-over-year. The company withdrew its financial guidance for fiscal year 2021.

Canopy traded down as much as 22% to $16.95 in Friday morning trades.