Aurora Cannabis (NASDAQ:ACB) Announces Quarterly Earnings Results

Aurora Cannabis (NASDAQ:ACB) released its quarterly earnings data on Wednesday. The company reported $0.09 EPS for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.01), Zacks reports. The firm had revenue of $68.59 million during the quarter, compared to the consensus estimate of $92.39 million. Aurora Cannabis had a negative net margin of 23.46% and a negative return on equity of 0.04%.

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 11.7%

Aurora Cannabis stock opened at $3.31 on Friday. Aurora Cannabis has a one year low of $3.28 and a one year high of $6.91. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.63 and a current ratio of 3.41. The stock has a market cap of $187.61 million, a PE ratio of -3.06 and a beta of 0.39. The stock has a fifty day moving average of $4.44 and a 200 day moving average of $4.79.

Analyst Ratings Changes

ACB has been the topic of a number of analyst reports. Canaccord Genuity Group assumed coverage on shares of Aurora Cannabis in a research note on Tuesday, January 27th. They set a “buy” rating on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Aurora Cannabis in a research report on Wednesday, January 21st. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold”.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. lifted its position in Aurora Cannabis by 1,808.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 10,518 shares of the company’s stock valued at $63,000 after purchasing an additional 9,967 shares during the period. Headlands Technologies LLC purchased a new position in shares of Aurora Cannabis during the 2nd quarter valued at about $66,000. Engineers Gate Manager LP acquired a new position in shares of Aurora Cannabis in the 2nd quarter valued at about $68,000. Susquehanna Fundamental Investments LLC purchased a new position in shares of Aurora Cannabis during the 3rd quarter valued at approximately $100,000. Finally, State of Wyoming raised its position in shares of Aurora Cannabis by 10.5% in the second quarter. State of Wyoming now owns 23,722 shares of the company’s stock worth $101,000 after acquiring an additional 2,246 shares during the period. 47.63% of the stock is owned by institutional investors and hedge funds.

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.