Aurora stock is showing unusual volatility as Aurora Cannabis (TSX:ACB) (NYSE:ACB) is making meaningful strides towards profitability as witnessed in its incredible third-quarter earnings announced late Tuesday.
The cannabis giant is giving all the right signals to its investors from increased sales revenue both locally and internationally to skyrocketing production and plunging net losses. The freshly released financial reports inspired positive energy towards the company’s stock in Wednesday's trading, which jumped about 4.50%.
Aurora Cannabis is clearly enjoying a spectacular run in the market as Aurora stock has jumped almost 70% so far this year. Aurora is among the three companies set to be licensed for medical cannabis production in Germany. This is a big deal for Aurora given that the European cannabis market is set to rise to lucrative levels soon.
Aurora Stock Beats Analysts’ Prediction
According to the financial report, Aurora’s gross revenue for the Q3 was CA$75.2 million. This represents a YOY rise of 367% and a lower QOQ increase of roughly 21%. After taxes the figure slams to CA$65.1 million with the percentage increase shrinking to 305% year-over-year and 20% quarter-on-quarter. The company’s gross revenue dwarfed analysts’ prediction of CA$68.5 million.
Another notable thing for Aurora Stock investors is the decreased net loss. The company reported a net loss of CA$158.4 million, a significant drop from Q2’s net loss of CA$237.8 million. This was still considerably big compared to 2018’s CA$19.2 million. By reporting CA$0.16 net loss per share, the company came short of analysts’ estimate of CA$0.04 per share.
Aurora Production Volume Doubles
Aurora Cannabis’ consumer net income for the Q3 rallied 37% to CA$29.6 million. Net income from medical cannabis tailed closely at CA$29.1 million representing a YOY rise of 169% and 12% QOQ increase.
During the latest quarter, Aurora increased its production volume by nearly 100% from the Q2 to 15,590 kg. The company expects to accelerate production even more during the Q4 to 25,000kg. The report also indicates a 38% surge in international sales to CA$4 million.
Aurora stock is trading up by 4.50%, now selling at $8.76 on the NYSE. The stock has witnessed a solid recovery from its session low of $8.02.
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