uploads///EPS Estimates

Aurora Cannabis: Analysts’ Near-Term Earnings Projections



Earnings projections

Aurora Cannabis (ACB) is expected to report improved EBITDA margins in 2020. The company’s EPS is expected to turn positive in 2020. Analysts expect the EPS to decline slightly. Let’s look at analysts’ projections for the company.

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EPS estimates

In the above chart, you can see that analysts expect Aurora Cannabis to report a negative EPS of 0.22 Canadian dollars. The company is expected to turn profitable in the next year. Analysts expect Aurora Cannabis to report an EPS of 0.03 Canadian dollars in 2020. In 2021, analysts expect the company’s EPS to fall slightly to 0.02 Canadian dollars. Aurora Cannabis’ peers (HMLSF) including Canopy Growth (WEED), Cronos Group (CRON), and Tilray (TLRY) are also expected to report a loss per share in 2019.

The growth projections help investors calculate the valuations. With negative earnings, using valuation multiples like the PE ratio is meaningless. We have used measures like sales and EBITDA, which could provide meaningful valuation multiples.

Read TLRY Is Too Rich for Jefferies—What about Other Cannabis Players? to learn more.


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