Aurora Cannabis (NASDAQ:ACB) Announces Earnings Results, Beats Estimates By $0.17 EPS

Aurora Cannabis (NASDAQ:ACB) released its earnings results on Wednesday, August 5th. The company reported $0.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.17, Zacks reports. The firm had revenue of $47.62 million during the quarter, compared to analyst estimates of $47.45 million. Aurora Cannabis had a positive return on equity of 4.37% and a negative net margin of 32.26%.

Here are the key takeaways from Aurora Cannabis’ conference call:

• International medical cannabis revenue rose 17% to CAD 43 million, with international markets contributing 64% of total revenue, driven particularly by Germany. Aurora also reported strong performance in Poland, Australia, and New Zealand.
• Consolidated adjusted gross margin was 58%, at the high end of fiscal 2027 guidance, supported by international sales and manufacturing efficiencies. Aurora highlighted genetics and operational improvements that can increase yields by up to 40% while improving potency and quality.
• Quarterly revenue was CAD 67.6 million and adjusted EBITDA fell to CAD 3.4 million from CAD 10.8 million year over year, primarily due to lower Canadian medical reimbursement rates and the planned exit from lower-margin Canadian consumer cannabis.
• Aurora ended the quarter with nearly CAD 150 million in cash and no debt, providing flexibility for international investment and acquisitions. The Safari Flower acquisition was adjusted-EBITDA accretive in Q1 and adds EU GMP-certified production capacity.
• Management expects fiscal Q2 revenue and adjusted EBITDA to increase sequentially, with growth led by Germany, Poland, Australia, and New Zealand, while reaffirming its fiscal 2027 outlook despite Canadian reimbursement headwinds.

Aurora Cannabis Stock Performance

NASDAQ ACB traded down $0.03 on Thursday, hitting $3.79. 2,839,724 shares of the company’s stock were exchanged, compared to its average volume of 1,125,089. The company has a debt-to-equity ratio of 0.03, a current ratio of 5.36 and a quick ratio of 2.80. The firm’s 50-day moving average price is $2.89 and its two-hundred day moving average price is $3.32. Aurora Cannabis has a fifty-two week low of $2.56 and a fifty-two week high of $6.66. The firm has a market cap of $234.75 million, a price-to-earnings ratio of -2.69 and a beta of 0.58.

Hedge Funds Weigh In On Aurora Cannabis

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Aurora Cannabis by 1,808.9% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 10,518 shares of the company’s stock worth $63,000 after acquiring an additional 9,967 shares in the last quarter. Headlands Technologies LLC purchased a new stake in shares of Aurora Cannabis during the 4th quarter worth approximately $58,000. Engineers Gate Manager LP purchased a new stake in shares of Aurora Cannabis during the 2nd quarter worth approximately $68,000. Squarepoint Ops LLC purchased a new stake in shares of Aurora Cannabis during the 4th quarter worth approximately $69,000. Finally, Susquehanna Fundamental Investments LLC purchased a new stake in shares of Aurora Cannabis during the 3rd quarter worth approximately $100,000. Institutional investors and hedge funds own 47.63% of the company’s stock.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Weiss Ratings lowered Aurora Cannabis from a “sell (d)” rating to a “sell (e+)” rating in a report on Tuesday. BMO Capital Markets upgraded Aurora Cannabis to a “hold” rating in a report on Wednesday, August 5th. Zacks Research upgraded Aurora Cannabis from a “hold” rating to a “strong-buy” rating in a report on Friday, August 7th. Finally, Wall Street Zen upgraded Aurora Cannabis from a “strong sell” rating to a “hold” rating in a research note on Saturday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy”.

About Aurora Cannabis

Aurora Cannabis Inc (NASDAQ: ACB) is a Canadian licensed producer of medical and consumer cannabis products headquartered in Edmonton, Alberta. Established in 2013, the company operates under Health Canada’s regulations to cultivate, process and distribute a range of cannabis-based offerings. Since its initial public listing in 2017, Aurora has grown into one of the country’s largest growers by cultivation capacity and production output.

The company’s core business spans the cultivation of dried flower, the extraction of cannabis oils and the development of value-added products such as softgels, capsules and topical treatments.