Is Aurora Cannabis a Buy After Its Q3 Results?
Shares of Aurora Cannabis (NYSE: ACB) have been trading wildly since the cannabis producer released its third-quarter results May 14. The report was an encouraging one for investors, as Aurora made progress in sales and in bringing down its expenses from the previous quarter. But that doesn't mean there are no problems or concerns moving forward. Let's take a closer look at how the pot company did in its most recent period and assess whether it's worth buying today.
Aurora's second-quarter results, released Feb. 13, were abysmal. Its revenue of 56 million Canadian dollars during the quarter was only a 3.4% improvement from the prior-year period. Meanwhile, with impairment and other expenses of more than CA$1.2 billion, the Edmonton, Alberta-based company had its worst performance ever, incurring a net loss of CA$1.3 billion.
Aurora also said in February that for the then-upcoming third quarter, it was expecting "modest to no growth" over the troubled Q2 performance. That was one of the reasons I was optimistic the company could have a much better Q3, and that it was possibly sandbagging expectations. And indeed, with CA$75.5 million in net revenue during Q3, Aurora showed a lot more than just modest growth. Sales were up 35% from Q2 and 16% from the prior-year period.
Source Fool.com
