Aurora stock is trading higher as Aurora Cannabis (TSX:ACB) (NYSE:ACB) is all set to report its first-quarter earnings next week. Let's analyze the factors to watch.
The cannabis industry has had a pretty tough time over the past months, and some of the biggest companies in that industry are now in focus ahead of their quarterly results. Aurora Cannabis, which is among the biggest cannabis companies in the world, is going to release its Q1 2020 results on November 14, and the results are going to be very closely followed by market watchers. Aurora stock recently hit its 52-week low, and investors will no doubt be hoping for a reversal in fortunes. Here is a look at what one could expect from the Aurora earnings.
Revenue Estimated to Jump
In the company’s fiscal fourth-quarter earnings for 2019, Aurora’s revenues failed to meet expectations, but analysts believe that the company is going to generate a significant jump in revenues in the first quarter. That being said, it should be noted that the slow rollout of retail outlets has been a constant problem for producers like Aurora, and the slow process had earlier been criticized by the company’s Chief Executive Terry Booth. On the other hand, Aurora Cannabis is making great efforts to make a splash in the edibles market and has established production hubs for the same.
Aurora stock is up 2.35% at $4.82.
The company managed to turn a profit towards the end of the 2019 financial year, but Aurora has had to cut down on the projections since then. The company has projected that it is going to generate positive EBITDA by Q2 2020.
That being said, any possibility of positive EBITDA will be heavily dependent on the sort of retail rollout that takes place in Canada in the coming months. It has been a problem for Aurora as well as other producers for quite some time.
Currently, Aurora Cannabis is trading at all-time lows, and there are a lot of uncertainties surrounding the stock at this point. However, some analysts believe that Aurora stock might just be at the right price for investors.
What do you think?
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