uploads///ACB Net Income Estimates

Aurora Cannabis’ Profitability in the Next Four Qurters


May. 31 2019, Published 11:35 a.m. ET

Aurora Cannabis

Aurora Cannabis (ACB) is expected to report sales of ~577 million Canadian dollars—243% year-over-year growth. However, the growth isn’t expected to translate into profits in the near term.

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Net losses

Aurora Cannabis is expected to report net losses of 146 million Canadian dollars over the next four quarters. The net losses are expected to be better than the net losses in the last four quarters of 436 million Canadian dollars.

Most of the costs to expand facilities to capture future sales are captured early. In the last four quarters, Aurora Cannabis made significant investments, which weighed down its profitability. The situation is expected to get better in the next four quarters with sequential losses getting smaller.

Investors are focused on the earnings. The earnings will likely remain highly volatile for the cannabis industry. As a result, there isn’t a clear leader in the cannabis industry.

Canopy Growth (WEED) is expected to report losses of 159 million Canadian dollars, while Tilray (TLRY) is expected to report losses of $37 million in the next four quarters. HEXO (HEXO) is expected to report a net income of 34 million Canadian dollars.


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