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How Aurora Cannabis Fared in the First Quarter

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Aurora Cannabis’s earnings

Aurora Cannabis (ACB) (ACB-NYSE) reported its Q1 2019 earnings early today. The company reported revenue of 29.6 million Canadian dollars, which missed the consensus analyst estimate of 39.52 million Canadian dollars. However, its revenues grew by about 260% YoY from 8.3 million Canadian dollars in the corresponding quarter last year. The below chart shows analysts’ estimates for companies expected to report later this week.

Margins and net income

Aurora Cannabis reported gross income of 20.7 million Canadian dollars, which missed analysts’ estimate of 26.9 million Canadian dollars. The gross income was much higher compared to the same quarter a year ago at 4.1 million Canadian dollars. Consequently, the gross margin expanded year-over-year from 58% to 70% in the first quarter.

While the company had impressive revenue growth and margin expansion, the earnings attributable to common shareholders grew to 105,000 Canadian dollars from just about 3,000 Canadian dollars in the first quarter of 2018.

Other companies to report

This week other cannabis companies (HMMJ) are also set to report their earnings. Cronos Group (CRON) and Tilray (TLRY) are expected to report earnings tomorrow. Canopy Growth (WEED) and CannTrust (CNTTF) are expected to report earnings on November 14.

To learn more about earnings expectations for these companies, visit Market Realist’s Why This Week Is So Important for Cannabis Investors.

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