Aurora Cannabis Shares Soar After Revenue Beat

While Aurora Cannabis shares were battered earlier in the week after executing a 1-for-12 reverse stock split, the company saw its shares soar later in the week after reporting strong quarterly results.

The troubled marijuana company reported stronger-than-expected revenue for the latest quarter with sales jumping amid the coronavirus pandemic.

Aurora shares stood at $USD7.72 in after-hours trading which was a gaine of 16.27% from Thursday’s close. The stock soared 14.48% during the regular session.

In the fiscal third quarter ended March 31, Aurora reported revenue that totaled C$75.5 million, up 16% from C$65.1 million a year ago. FactSet analysts had forecast sales of C$66.7 million for the latest quarter.

The company didn’t report net income/loss in its news release while analysts forecast a loss of 77 cents a share.

“I am … pleased that our third quarter 2020 financial results were in-line with our expectations, and that we remain firmly on track with the cost-savings and capex goals we detailed during our business transformation plan in February 2020,” Aurora CEO Michael Singer stated.

Earlier in the week Cowen analyst Vivien Azer wrote, “With one of the largest production capacities among the LPs, ACB has gotten off to a solid start in the Canadian adult use cannabis industry. However, cost overruns and missed targets have resulted in notable management turnover and the need to refinance debt with strict mandates around profitability.”

Shares of Aurora Cannabis have dropped 62% in the last three months through Thursday’s closing price.

Disclaimer: We have no position in Aurora Cannabis Inc. (NYSE: ACB) and have not been compensated for this article.