Cannabis stocks continue to extend rally as Aurora stock moves up big on Tuesday after Aurora Cannabis (TSX:ACB) (NYSE:ACB) announced a solid forecast for the fiscal first-quarter earnings.
Big Relief
Over the past year or so, the marijuana industry has grown at a breakneck pace following the legalization of the product in Canada, and some companies have naturally become the leaders in the area. Canada-based Aurora Cannabis is certainly one of these, and today, the company made a major announcement that lit a fire under its stock. In an announcement this morning, Aurora Cannabis revealed its projection for Q4 2019 and investors seemed optimistic about the projection.
Aurora has projected that its net revenue for the quarter is going be between $100 million and $107 million, and that is a significant jump from its revenue in recent quarters. In the previous quarter, Aurora generated revenue of $65.1 million, while in the quarter that had concluded in June it clocked $19.1 million in total revenue. On the other hand, the company also projected that cannabis sale figures are going to be between $90 million and $95 million.
>> Aphria Stock Surges After Company's Q4 Results Surprise Investors
Soon enough the stock started climbing, and in early trade on Tuesday, Aurora stock rose by as much as 15% at $7.15 on the NYSE.
Aurora also raised its guidance for annual cannabis production from the earlier projected 25,000 kilos to 30,000 kilos. Full-year revenues have been projected to be between $249 million and $256 million.
The projections from Aurora Cannabis today have come as a big boost for the cannabis sector, which has been beleaguered over the past few months due to a range of issues and many stocks have experienced steep declines.
It remains to be seen how Aurora stock performs over the next few weeks, but it goes without saying that the company’s projections could have an overall effect on the sector. The company went on to state that the official financial results for the year are going to be released before September 15.
Last week, Aphria Inc (TSX:APHA) (NYSE:APHA) reported an unexpected profitable quarter, and the stock went up over 30%.
Featured image: Canva
