Shares of Aphria Inc. shot up 19% toward a 2-month high in premarket trading Wednesday, after the Canada-based cannabis company reported a surprise fiscal third-quarter profit and revenue that nearly doubled and beat expectations. The company reported late Tuesday that it swung to net income of C$4.96 million ($3.53 million), or 2 cents a share, from a loss of C$108.27 million, or 43 cents a share, in the year-ago period. That beat the FactSet consensus for a loss per share of 4 cents. Revenue rose to C$144.42 million ($102.8 million) from C$73.58 million to beat the FactSet consensus of C$130.9 million. Net cannabis revenue rose 65% from the sequential second quarter to C$55.6 million, which included 8,171 kilogram equivalents sold for the adult-use market. The average selling price of medical cannabis decreased to C$6.41 ($4.56) per gram from C$8.16 the prior quarter. Aphria said given the growing uncertainty over the impact of the COVID-19 pandemic, it can't "accurately" forecast fourth-quarter results, and is withdrawing previous fiscal 2020 revenue guidance. The U.S.-listed stock has lost 30.5% over the past three months, while the Cannabis ETF has dropped 40.3% and the S&P 500 has declined 13.5%. Read More...
Shares of Aphria Inc. shot up 19% toward a 2-month high in premarket trading Wednesday, after the Canada-based cannabis company reported a surprise fiscal third-quarter profit and revenue that nearly doubled and beat expectations. The company reported late Tuesday that it swung to net income of C$4.96 million ($3.53 million), or 2 cents a share, from a loss of C$108.27 million, or 43 cents a share, in the year-ago period. That beat the FactSet consensus for a loss per share of 4 cents. Revenue rose to C$144.42 million ($102.8 million) from C$73.58 million to beat the FactSet consensus of C$130.9 million. Net cannabis revenue rose 65% from the sequential second quarter to C$55.6 million, which included 8,171 kilogram equivalents sold for the adult-use market. The average selling price of medical cannabis decreased to C$6.41 ($4.56) per gram from C$8.16 the prior quarter. Aphria said given the growing uncertainty over the impact of the COVID-19 pandemic, it can’t “accurately” forecast fourth-quarter results, and is withdrawing previous fiscal 2020 revenue guidance. The U.S.-listed stock has lost 30.5% over the past three months, while the Cannabis ETF has dropped 40.3% and the S&P 500 has declined 13.5%.
Read More
Add Comment