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Aurora Cannabis (ACB) to Report Q3 Earnings: What's in Store?

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Aurora Cannabis Inc. (ACB - Free Report) is scheduled to report third-quarter fiscal 2020 results on May 14, before the opening bell.

In the last reported quarter, the company delivered a negative earnings surprise of 200%.

Q3 Estimates

For the fiscal third quarter, the Zacks Consensus Estimate for earnings is pegged at 53 cents per share, indicating a massive decline of 562.5% from the year-ago quarter. The same for revenues stands at $46.9 million, suggesting a decline of 4.2% from the year-ago reported figure.

Factors to Note

Aurora Cannabis has been leveraging its coast-to-coast supply agreements to provide a wide range of premium consumer products throughout Canada. Moreover, the company remains committed toward serving medical patients with sustained supply of premium products. These factors are likely to have contributed to medical cannabis sales in the to-be-reported quarter.

Ongoing improvement in the company’s production cash cost per gram might get reflected in gross margin on cannabis net revenues in the fiscal third quarter.

Aurora Cannabis Inc Price and EPS Surprise

 

Aurora Cannabis Inc Price and EPS Surprise

Aurora Cannabis Inc price-eps-surprise | Aurora Cannabis Inc Quote

Per management, in the fiscal third quarter, the company anticipates continued refinement of yield and operational efficiencies that will enable it to deliver production at a quarterly rate that averages 150,000 kilogram annually.

In February the company received the EU GMP (European Union Good Manufacturing Practices) certification of its Aurora River facility with a run rate of around 30,000 kilograms annually, which will allow the company to allocate significantly higher volume of products for export markets as and when they develop. This might have driven the fiscal third-quarter performance.

Aurora Cannabis has been selectively collaborating with a number of organizations, developing inventory and prioritizing its resources to make sure that consumers across Canada have access to its high-quality derivative products including edibles, vapes and infused beverages. This may have impacted the fiscal third-quarter performance.

However, with the coronavirus outbreak intensifying since late February, supply chain disruption is likely to have weighed on the to-be-reported quarter’s performance.

Here’s What the Quantitative Model Suggests

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP: Aurora Cannabis has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3.

Stocks Worth a Look

Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.

BioLife Solutions, Inc. (BLFS - Free Report) has an Earnings ESP of +816.68% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

HEXO Corp. (HEXO - Free Report) has an Earnings ESP of +25.00% and a Zacks Rank of 3.

Motus GI Holdings, Inc. (MOTS - Free Report) has an Earnings ESP of +3.08% and a Zacks Rank of 2.

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