Shares of Aphria Inc. surged 6.1% toward a 3 1/2-month high in premarket trading Tuesday, after the Canada-based cannabis company reported fiscal second-quarter losses that were in line with expectations and provided an upbeat full-year sales outlook. For the quarter to Nov. 30, Aphria swung to a net loss of C$8.2 million ($6.3 million), or 3 cents a share, from a profit of C$54.8 million, or 22 cents a share, in the same period a year ago. The FactSet consensus was for a per-share loss of 3 cents. Net revenue rose more than 5-fold to C$120.6 million ($92.2 million) from C$21.7 million, but was below the FactSet consensus of C$129.8 million. Kilograms sold rose 18% to 7,062 while cash cost to produce dried cannabis fell 22% to C$1.11 per gram. For fiscal 2020, the company expects revenue of C$575 million to C$625 million, above the FactSet consensus of C$571 million. "We are continuing to expand our capabilities internationally with solid progress during the quarter in Germany and South America and look to monetize non-core assets," said Chief Executive Irwin Simon. "We are confident in our market position and our ability to generate sustainable profit growth." The stock has rallied 25% over the past three months through Monday, while the ETFMG Alternative Harvest ETF has lost 5.8% and the S&P 500 has gained 11%. Read More...
Shares of Aphria Inc. surged 6.1% toward a 3 1/2-month high in premarket trading Tuesday, after the Canada-based cannabis company reported fiscal second-quarter losses that were in line with expectations and provided an upbeat full-year sales outlook. For the quarter to Nov. 30, Aphria swung to a net loss of C$8.2 million ($6.3 million), or 3 cents a share, from a profit of C$54.8 million, or 22 cents a share, in the same period a year ago. The FactSet consensus was for a per-share loss of 3 cents. Net revenue rose more than 5-fold to C$120.6 million ($92.2 million) from C$21.7 million, but was below the FactSet consensus of C$129.8 million. Kilograms sold rose 18% to 7,062 while cash cost to produce dried cannabis fell 22% to C$1.11 per gram. For fiscal 2020, the company expects revenue of C$575 million to C$625 million, above the FactSet consensus of C$571 million. “We are continuing to expand our capabilities internationally with solid progress during the quarter in Germany and South America and look to monetize non-core assets,” said Chief Executive Irwin Simon. “We are confident in our market position and our ability to generate sustainable profit growth.” The stock has rallied 25% over the past three months through Monday, while the ETFMG Alternative Harvest ETF has lost 5.8% and the S&P 500 has gained 11%.
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