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Aurora Cannabis: What to Expect from Its Q2 Earnings

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Aurora Cannabis

Aurora Cannabis (ACB) is scheduled to report its second-quarter earnings on February 11. Next week could be eventful. Canopy Growth (WEED) and Tilray (TLRY) are also expected to report their earnings. Let’s look at what analysts expect for the company’s sales, margins, and EPS.

Estimates

Analysts expect Aurora Cannabis to report revenues of 51.8 million Canadian dollars, which would grow sequentially from 29.7 million Canadian dollars and from 11.7 million Canadian dollars in the second quarter of 2017. The company is also expected to see its gross margins expand YoY (year-over-year) from 55.4% to 57.4%. Sequentially, the margins will likely compare with ~55.8%.

Aurora Cannabis is expected to report significant YoY sales growth. The margins are expected to remain intact. However, the company is expected to report a loss per share of 0.06 Canadian dollars compared to a loss per share of 0.08 Canadian dollars in the previous quarter and 0.03 Canadian dollars in the second quarter of 2017.

On January 24, Aurora Cannabis closed a $345 million offering on senior convertible notes due in 2024. The notes carry a yield of 5.5%. The company plans to use the proceeds to support its Canadian business (HMMJ) and drive international expansion. To learn more, read Aurora’s Growing Debt Is Making It a Riskier Bet.

Aphria (APHA) reported its earnings last month. To learn more, read Key Takeaways from Aphria’s Second-Quarter Earnings.

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