Aurora Cannabis (NASDAQ:ACB) Posts Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Aurora Cannabis (NASDAQ:ACB) posted its quarterly earnings results on Wednesday. The company reported $0.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.17, Zacks reports. Aurora Cannabis had a positive return on equity of 0.10% and a negative net margin of 33.57%.The business had revenue of $47.62 million for the quarter, compared to the consensus estimate of $47.48 million.

Here are the key takeaways from Aurora Cannabis’ conference call:

• International medical cannabis revenue rose 17% to CAD 43 million, with international markets contributing 64% of total revenue, driven particularly by Germany. Aurora also reported strong performance in Poland, Australia, and New Zealand.
• Consolidated adjusted gross margin was 58%, at the high end of fiscal 2027 guidance, supported by international sales and manufacturing efficiencies. Aurora highlighted genetics and operational improvements that can increase yields by up to 40% while improving potency and quality.
• Quarterly revenue was CAD 67.6 million and adjusted EBITDA fell to CAD 3.4 million from CAD 10.8 million year over year, primarily due to lower Canadian medical reimbursement rates and the planned exit from lower-margin Canadian consumer cannabis.
• Aurora ended the quarter with nearly CAD 150 million in cash and no debt, providing flexibility for international investment and acquisitions. The Safari Flower acquisition was adjusted-EBITDA accretive in Q1 and adds EU GMP-certified production capacity.
• Management expects fiscal Q2 revenue and adjusted EBITDA to increase sequentially, with growth led by Germany, Poland, Australia, and New Zealand, while reaffirming its fiscal 2027 outlook despite Canadian reimbursement headwinds.

Aurora Cannabis Trading Up 3.0%

Shares of Aurora Cannabis stock opened at $2.90 on Thursday. The firm has a fifty day moving average price of $2.92 and a 200 day moving average price of $3.36. The stock has a market cap of $179.32 million, a PE ratio of -1.86 and a beta of 0.58. Aurora Cannabis has a 1 year low of $2.56 and a 1 year high of $6.66. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.94 and a quick ratio of 3.32.

Analysts Set New Price Targets

ACB has been the topic of a number of recent research reports. Weiss Ratings upgraded shares of Aurora Cannabis from a “sell (d-)” rating to a “sell (d)” rating in a research note on Tuesday, June 16th. Wall Street Zen upgraded Aurora Cannabis from a “strong sell” rating to a “sell” rating in a report on Saturday, May 9th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold”.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Headlands Technologies LLC purchased a new stake in shares of Aurora Cannabis in the fourth quarter valued at approximately $58,000. Northwestern Mutual Wealth Management Co. lifted its stake in Aurora Cannabis by 1,808.9% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 10,518 shares of the company’s stock valued at $63,000 after buying an additional 9,967 shares in the last quarter. Engineers Gate Manager LP acquired a new stake in Aurora Cannabis in the 2nd quarter worth about $68,000. Squarepoint Ops LLC purchased a new stake in Aurora Cannabis during the 4th quarter worth approximately $69,000. Finally, Susquehanna Fundamental Investments LLC purchased a new stake in Aurora Cannabis during the 3rd quarter worth approximately $100,000. Institutional investors and hedge funds own 47.63% of the company’s stock.

Aurora Cannabis Company Profile

Aurora Cannabis Inc (NASDAQ: ACB) is a Canadian licensed producer of medical and consumer cannabis products headquartered in Edmonton, Alberta. Established in 2013, the company operates under Health Canada’s regulations to cultivate, process and distribute a range of cannabis-based offerings. Since its initial public listing in 2017, Aurora has grown into one of the country’s largest growers by cultivation capacity and production output.

The company’s core business spans the cultivation of dried flower, the extraction of cannabis oils and the development of value-added products such as softgels, capsules and topical treatments.