Aurora Cannabis (NASDAQ:ACB) Releases Earnings Results

Aurora Cannabis (NASDAQ:ACB) posted its quarterly earnings data on Wednesday. The company reported $0.09 earnings per share for the quarter, Zacks reports. Aurora Cannabis had a negative net margin of 15.96% and a negative return on equity of 0.58%.

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

• Aurora delivered a solid Q3 with net revenue up 7% to CAD 94.2M, medical revenue up 12%, adjusted gross margin of 62% (medical 69%), adjusted EBITDA of CAD 18.5M, adjusted net income of CAD 7.2M, positive free cash flow of CAD 15.5M, and CAD 154M in cash with no cannabis-related debt.
• Management is refocusing on higher-margin global medical cannabis by exiting select Canadian consumer markets and selling its controlling stake in Bevo, and filed an At‑the‑Market program to raise up to CAD 100M for accretive uses like GMP cultivation and M&A to accelerate international growth.
• International operations are a key strength — Germany drove double-digit international growth, Aurora is doubling production at its German GMP site, holds #2 share in Australia and #1 in Poland, and emphasizes EU/TGA GMP-certified manufacturing as a durable competitive advantage in regulated markets.
• Near-term headwinds include expected one-time Q4 cash costs tied to market exits/divestitures, a decline in plant propagation adjusted gross margin to 16% (including a CAD 1.1M inventory write-off), and a 48% drop in consumer cannabis revenue, which may pressure Q4 cash flow and reported revenues.

Aurora Cannabis Stock Down 9.0%

Aurora Cannabis stock traded down $0.37 during midday trading on Wednesday, hitting $3.70. 1,763,052 shares of the company were exchanged, compared to its average volume of 1,130,999. The company has a market cap of $209.43 million, a PE ratio of -5.34 and a beta of 0.39. Aurora Cannabis has a fifty-two week low of $3.68 and a fifty-two week high of $6.91. The company’s fifty day moving average price is $4.48 and its 200-day moving average price is $4.81. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.41 and a quick ratio of 1.63.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on ACB shares. Weiss Ratings restated a “sell (d-)” rating on shares of Aurora Cannabis in a report on Wednesday, January 21st. Canaccord Genuity Group began coverage on shares of Aurora Cannabis in a research note on Tuesday, January 27th. They set a “buy” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy”.

Institutional Investors Weigh In On Aurora Cannabis

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ACB. Millennium Management LLC grew its stake in Aurora Cannabis by 563.7% during the 3rd quarter. Millennium Management LLC now owns 391,782 shares of the company’s stock valued at $2,339,000 after purchasing an additional 332,750 shares in the last quarter. Two Sigma Investments LP boosted its stake in shares of Aurora Cannabis by 7,412.0% during the 3rd quarter. Two Sigma Investments LP now owns 1,149,869 shares of the company’s stock valued at $6,853,000 after buying an additional 1,134,562 shares during the last quarter. UBS Group AG grew its position in shares of Aurora Cannabis by 136.8% during the third quarter. UBS Group AG now owns 184,190 shares of the company’s stock worth $1,098,000 after buying an additional 106,391 shares in the last quarter. Tidal Investments LLC grew its position in shares of Aurora Cannabis by 6.0% during the second quarter. Tidal Investments LLC now owns 1,509,483 shares of the company’s stock worth $6,400,000 after buying an additional 86,045 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in shares of Aurora Cannabis by 4.1% in the first quarter. Goldman Sachs Group Inc. now owns 743,903 shares of the company’s stock worth $3,266,000 after buying an additional 29,099 shares during the last quarter. Hedge funds and other institutional investors own 47.63% of the company’s stock.

About Aurora Cannabis

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.