Can Aphria Deliver Another Profitable Quarter?
When Aphria (NYSE: APHA) reported positive net income in its fiscal fourth-quarter 2019 results, it bucked the unprofitable trend seen among many marijuana stocks it competes against. Canopy Growth (NYSE: CGC) has lost more than $1.5 billion in the first two quarters of the year, while Tilray (NASDAQ: TLRY) has reported five straight quarters of losses.
Speculative momentum within the cannabis market has certainly waned in recent months. As investors realized that these equities were trading at far beyond any sort of actual earnings and the losses continued, these premiums were no longer tolerated.
With new management clearly focused on proving the business has what it takes, Aphria made a strong case for itself last quarter. Revenue increased 969% year over year, and 75% quarter to quarter -- a result of the rapid sales gains from recreational markets. Pretty much every big name is putting up big revenue growth. What differentiated Aphria were its earnings. In a stark contrast to the losses under the previous CEO Vic Neufeld, Aphria posted net income of CA$15.76 million.
Source Fool.com
