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

Key Points

• Aurora Cannabis reported earnings of $0.04 per share, beating analyst estimates by $0.17, while quarterly revenue reached CAD 67.6 million.
• International medical cannabis revenue increased 17% to CAD 43 million, and adjusted gross margin reached 58%, driven by Germany and other overseas markets.
• Adjusted EBITDA declined to CAD 3.4 million from CAD 10.8 million year over year, but Aurora ended the quarter with nearly CAD 150 million in cash, no debt, and expects revenue and EBITDA to rise sequentially next quarter.

Aurora Cannabis (NASDAQ:ACB - Get Free Report) released its earnings results on Wednesday. The company reported $0.04 earnings per share for the quarter, beating analysts' consensus estimates of ($0.13) by $0.17, Zacks reports. Aurora Cannabis had a negative net margin of 33.57% and a positive return on equity of 0.10%.

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 Price Performance

ACB traded up $0.09 during trading on Wednesday, hitting $2.90. 2,308,299 shares of the company traded hands, compared to its average volume of 1,046,765. The company has a current ratio of 5.94, a quick ratio of 3.32 and a debt-to-equity ratio of 0.04. The company has a market cap of $179.32 million, a PE ratio of -1.86 and a beta of 0.58. The stock's 50-day simple moving average is $2.94 and its two-hundred day simple moving average is $3.37. Aurora Cannabis has a 1 year low of $2.56 and a 1 year high of $6.66.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on ACB shares. Weiss Ratings upgraded Aurora Cannabis from a "sell (d-)" rating to a "sell (d)" rating in a research report on Tuesday, June 16th. Wall Street Zen upgraded Aurora Cannabis from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 9th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold".

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Two Sigma Investments LP increased its holdings in shares of Aurora Cannabis by 7,412.0% in the third quarter. Two Sigma Investments LP now owns 1,149,869 shares of the company's stock worth $6,853,000 after purchasing an additional 1,134,562 shares during the last quarter. Millennium Management LLC boosted its stake in Aurora Cannabis by 563.7% during the third quarter. Millennium Management LLC now owns 391,782 shares of the company's stock valued at $2,339,000 after buying an additional 332,750 shares during the last quarter. Trexquant Investment LP bought a new stake in Aurora Cannabis in the 4th quarter worth approximately $590,000. UBS Group AG raised its holdings in shares of Aurora Cannabis by 136.8% during the 3rd quarter. UBS Group AG now owns 184,190 shares of the company's stock worth $1,098,000 after acquiring an additional 106,391 shares in the last quarter. Finally, Tidal Investments LLC boosted its position in shares of Aurora Cannabis by 6.0% during the 2nd quarter. Tidal Investments LLC now owns 1,509,483 shares of the company's stock valued at $6,400,000 after acquiring an additional 86,045 shares during the last quarter. Institutional investors own 47.63% of the company's stock.

Aurora Cannabis Company Profile

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.

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