Aurora Cannabis (ACB) Stock: Climbing On Earnings

Aurora Cannabis Inc (TSE: ACB) (NYSE: ACB) released its earnings report for the fiscal first quarter, blowing away expectations. As you could imagine, with the positive earnings report in mind, excited investors are pushing the stock on a run for the top. Today, we’ll talk about what we saw from the earnings report, what we’re seeing from ACB stock as a result, and what we’ll be watching for ahead.

ACB Climbs On Earnings

As mentioned above, Aurora Cannabis is having a strong day in the market today after reporting its earnings for the first quarter. Here’s what we saw from the report:

  • Earnings – In terms of earnings, ACB did overwhelmingly well. During the first quarter, the company generated net earnings in the amount of $105.5 million. That figure showed massive growth from the $3.6 million produced one yar ago and $79.9 million produced in the last quarter.
  • Revenue – Revenue also proved to be an overwhelmingly positive point of focus. During the quarter, the company generated revenue in the amount of $24.6 million. That’s up 236% year ove year and 65% quarter over quarter.
  • Costs And Selling Price – On a per gram basis, the company also said that it is generating 15% more revenue per gram in selling prices while the cost per gram fell 12%. Currently, the average selling price per gram is $8.39 and the average cost to the company is $1.90.
  • Registered Patients – Finally, active registered patients is seeing strong gains. Patients rose 250% to 67,484 active registered patients in the quarter.

In a statement, Terry Booth, CEO at ACB, had the following to offer:

We continue to successfully execute our differentiated and diversified strategy committed towards domestic and international expansion in the medical cannabis market, adult consumer use sales, production scale-up, innovation, plant and medical research, and product development… The commencement of adult consumer use sales in Canada has been very successful for Aurora, with strong performance across all product categories and brands. Our initial roll-out success demonstrates how our high-quality Aurora Standard products and well-positioned brands have resonated strongly with the consumer market and our preparedness for the logistical challenges in effectively bringing our products to market. Given the strong unmet consumer demand evident across Canada, we are confident that our rapidly increasing production capacity will result in continued acceleration of revenue growth.

We also continue to perform well in our international medical business. With the acquisition of ICC Labs, which we expect to close in the coming weeks, we are establishing leadership in Latin America. In addition to ongoing international growth and expansion led by our team at Aurora Europe, we were also the first non-government organization to export medical cannabis to Poland, a medical market with a population roughly equal to Canada. Across our international activities, we have established significant early mover advantage and market leadership. With the scale-up of our domestic and international production facilities, we anticipate increased availability of product to service these developing markets which will drive further global growth for the Company.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Aurora Cannabis, the news proved to be overwhelmingly positive. After all, the company reported incredibly strong earnings, showing massive growth on every target. So, it comes as no surprise to see that excited investors are pushing the stock upward. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:04), ACB is trading at $7.48 per share after a gain of $0.19 per share or 2.61% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on ACB. In particular, we’re interested in following the story surrounding the company’s continued growth, especially considering the fact that the recreational cannabis market just opened up in Canada. So, this growth might just be the beginning. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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