Aphria stock has been outperforming the broader cannabis weakness over the past couple of months after Aphria Inc (TSX:APHA) (NYSE:APHA) had solid earnings in its most recent quarter.
Solid Earnings
The cannabis market has gone through tough times over the course of the past few months, and stocks of many of the biggest companies in the industry have lost values from their peaks. Aphria, however, has continued to beat its peers in recent weeks.
In August alone, Aphria stock gained as much as 18%, and it has continued an impressive run since. It has managed to overshadow some of the largest companies in the industry like Canopy Growth (TSX:WEED) (NYSE:CGC) and Aurora Cannabis (TSX:ACB) (NYSE:ACB).
The trigger behind the growth in Aphria stock has been the company’s impressive bottom-line growth and sales. Sales in 2019 have skyrocketed by as much as 540% to hit $237 million, and analysts expect that Aphria’s sales figures are going to grow steadily over the next two years.
In 2020, analysts expect sales to soar by 187.5% to hit $681.71 million and a year later, another 40% growth is expected, with total sales coming to $955.72 million.
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Aphria stock is up 1.20% at $6.96 CAD in Tuesday's trading session.
Now, sales growth is something many other companies have achieved over the years, but what makes Aphria Inc different is the fact that it is expected to be profitable by the time 2020 comes to an end. Profitability is still elusive in the industry, and that sets the company apart as well.
In addition to that, the company has also increased its production capabilities significantly, and if it manages to get the necessary license from Health Canada, then it is going to constitute another massive boost.
At this point in time, Aphria stock may be doing well, but it is still 67% below its 52-week high.
Aphria Inc is all set to release results for the first quarter ended August 31, 2019, on October 15, 2019, before market open.
Featured image: Canva
