Aurora Cannabis to release earnings next week, expected to beat estimates

Aurora Cannabis to release earnings next week, expected to beat estimates

The first investor call of FY2020 is a week away

Aurora Cannabis (TSE: ACB) is putting the final touches on its latest financial data and expects to have everything ready to be released in about a week. The leading cannabis company has announced that it will hold a conference call for the most recent quarter, its first fiscal 2020 quarter, on November 14 at 6 PM Eastern Time. Leading the conference will be CEO Terry Booth, CFO Glen Ibbot, Chief Corporate Office Cam Battley and Executive Chairman Michael Singer. Based on what has been presented so far, investors should expect great news coming out of the call.

Revenues are expected to be higher in the quarter than they were a year earlier. Earnings, however, are expected to be down compared to the same period last year. What the final numbers are will dictate how the company’s shareholders respond and how much movement the company’s stock sees. Zacks Equity Research explains, “While management’s discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it’s worth having a handicapping insight into the odds of a positive EPS surprise.”

Revenues, based on everything that has been made available, should be around $72.82 million. This is an increase of around 220.7% over the same quarter last year. Earnings are down due to continued expansion at the company as it prepares for a larger selection of legal areas, as well as the anticipated sale of cannabis derivatives in Canada, expected to begin next month.

Zacks adds, “For Aurora Cannabis Inc., the most accurate estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company’s earnings prospects. This has resulted in an Earnings ESP of +8.70%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Aurora Cannabis Inc. Will most likely beat the consensus EPS estimate.”