This Is What To Expect Ahead Of Aurora Cannabis Inc’s Earnings Report Today After The Bell

After the market closes today, Aurora Cannabis Inc. (TSX: ACB) (Nasdaq: ACB) will report second quarter financial results and we expect the market to dissect the numbers that are released. 

Yesterday, Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) traded almost 15% higher after releasing third quarter financial results and we hope to see a similar response to what is reported by Aurora Cannabis. 

During the last quarter, Aurora Cannabis has been under considerable pressure and we believe that broker-dealers have become more bearish on it. The vast majority of the firms that cover the Canadian Licensed Producer (LP) have assigned it a Hold or a Sell rating. 

So far this month, two firms have lowered its price target on Aurora Cannabis and we find this to be significant. In late 2021, several broker-dealers reported rating and price target changes for the Canadian LP, however, we want to highlight the two most recent changes:

• February 7th – MKM Partners lowered its price target to C$6 from C$8
• February 2nd – CIBC lowered its price target to C$6.50 from C$9.25

Canopy Growth’s post-earnings rally benefited the entire cannabis sector and Aurora Cannabis rallied more than 10% on the day. Today, we will be closely monitoring price movements ahead of Aurora Cannabis’ earnings report. Two key data points from the company’s second quarter earnings report to be aware of are:

1. The market expects Aurora Cannabis to report $47.16 million of revenue, which would represent a 11.3% decline on a year-over-year basis
2. The market expects Aurora Cannabis to report a $0.17 adjusted loss per share which would be better than the $0.28 adjusted loss per share that was reported in the same period last year

Many analysts do not expect Aurora Cannabis to be profitable until 2024 and we continue to be cautiously optimistic with the business. The last few years have been challenging for the Canadian LP and there have been major changes to the operating structure and the management team over this time period.

Last month, Aurora Cannabis announced what it believes to be the largest shipment of medical cannabis to Israel to-date. In December, the company exported approx. C$10 million of medical cannabis to Israel and we expect the market to be highly focused on the international side of the business. 

If you are interested in learning more about Aurora Cannabis’ upcoming earnings report, please send an email to support@technical420.com with the subject “Aurora Cannabis to Report Earnings” to be added to our distribution list. 

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Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

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