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In the last-reported quarter, the company’s loss of 8 cents was narrower than the Zacks Consensus Estimate of a loss of 12 cents. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on two occasions and missed in the other two, delivering a negative earnings surprise of 153.4%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors to Note
On its fiscal 2022 fourth-quarter earnings call in September, Aurora Cannabis confirmed that its acquisition of a controlling interest in Bevo Agtech Inc., the sole parent of Bevo Farms Ltd., would be immediately accretive to its operations. Per the buyout terms, which was completed in August, Aurora Cannabis would repurpose the Aurora Sky facility, orchid cultivation and vegetable propagation. This is expected to significantly increase Bevo's production capability and extended shipping range in Canada and the United States, along with enabling Aurora Cannabis to generate incremental revenue. This is likely to have partly driven the company’s fiscal 2023 first-quarter revenues.
During the last-reported quarter, Aurora Cannabis confirmed that it witnessed solid revenues from its global medical cannabis business. This was partly due to its exposure to nearly a dozen countries outside of Canada, which provides it with relative insulation as it relates to the economic climate and conditions in specific countries across Europe, Israel and Australia.
In countries like Poland and the UK, Aurora Cannabis has been maintaining its market share over the past few months, which is likely to have continued in the first quarter of fiscal 2023, thereby pushing up its revenues. The company will also likely provide an update regarding its planned launch of new flower and extract products in Poland and sustained rapid growth in patient population as new clinics open up in the UK, which it had mentioned during its fourth-quarter fiscal 2022 earnings call in September.
Aurora Cannabis’ performance in Germany is also likely to have been boosted by shipments of domestic medical cannabis, whose production has been going on in the country after the receipt of EU GMP certification in May. Also, the expanding market share in Germany on the back of its new product innovation is expected to be another top revenue contributor.
On the last earnings call, Aurora Cannabis confirmed that it expects a number of new medical markets to come online in fiscal 2023. The company is expected to provide an update regarding the same on the fiscal first-quarter earnings call. This raises our optimism about the stock.
Aurora Cannabis has been witnessing robust sales in its Canadian medical market over the past few months, driven by strength in net revenue per order and per participating patient resulting from a shift toward higher value insured patients. The stabilization in its Canadian adult recreational segment is likely to have continued in the fiscal first quarter on the back of strengthened product offerings in certain categories. Also, the company is expected to have meaningfully benefited from the Thrive acquisition, which continues to advance its premiumization strategy. These developments are likely to have significantly pushed up the fiscal first-quarter revenues of Aurora Cannabis.
Aurora Cannabis’ fiscal first quarter revenues are also likely to have been driven by the 13 SKUs launched across its recreational and medical channels in June. The company also confirmed to have a stack pipeline to serve it over the coming quarters.
However, the economic challenges that Germany is currently facing, like the war in Ukraine and the impact that it is having on energy prices and inflation, are likely to have weighed on Aurora Cannabis’ performance in the to-be-reported quarter. The company’s performance is also likely to have dampened due to the probable continuation of the limited supply of high-demand cultivars in Europe and a weakened euro, which was witnessed in the fourth quarter of fiscal 2022.
The Estimate Picture
For first-quarter fiscal 2023, the Zacks Consensus Estimate of $38.9 million for total revenues implies a decline of 18.6% from the prior-year quarter’s reported figure.
The consensus estimate for the bottom line is currently pegged at a loss of 9 cents per share.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, 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 currently carries a Zacks Rank #2.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle:
Cyclacel Pharmaceuticals, Inc. (CYCC - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank of 1. CYCC has an estimated growth rate of 5.6% for 2022.
AVEO Pharmaceuticals, Inc. has an Earnings ESP of +55.00% and is a Zacks #1 Rank stock. AVEO has an estimated growth rate of 53.4% for 2022.
AVEO Pharmaceuticals’ earnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 13.1%.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +21.62% and carries a Zacks Rank of 2 at present. GDRX has an estimated long-term growth rate of 16.4%.
GoodRx’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 19.4%.
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Aurora Cannabis (ACB) to Report Q1 Earnings: What's in Store?
Aurora Cannabis Inc. (ACB - Free Report) is scheduled to report first-quarter fiscal 2023 results on Nov 10, after the closing bell.
In the last-reported quarter, the company’s loss of 8 cents was narrower than the Zacks Consensus Estimate of a loss of 12 cents. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on two occasions and missed in the other two, delivering a negative earnings surprise of 153.4%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors to Note
On its fiscal 2022 fourth-quarter earnings call in September, Aurora Cannabis confirmed that its acquisition of a controlling interest in Bevo Agtech Inc., the sole parent of Bevo Farms Ltd., would be immediately accretive to its operations. Per the buyout terms, which was completed in August, Aurora Cannabis would repurpose the Aurora Sky facility, orchid cultivation and vegetable propagation. This is expected to significantly increase Bevo's production capability and extended shipping range in Canada and the United States, along with enabling Aurora Cannabis to generate incremental revenue. This is likely to have partly driven the company’s fiscal 2023 first-quarter revenues.
During the last-reported quarter, Aurora Cannabis confirmed that it witnessed solid revenues from its global medical cannabis business. This was partly due to its exposure to nearly a dozen countries outside of Canada, which provides it with relative insulation as it relates to the economic climate and conditions in specific countries across Europe, Israel and Australia.
Aurora Cannabis Inc. Price and EPS Surprise
Aurora Cannabis Inc. price-eps-surprise | Aurora Cannabis Inc. Quote
In countries like Poland and the UK, Aurora Cannabis has been maintaining its market share over the past few months, which is likely to have continued in the first quarter of fiscal 2023, thereby pushing up its revenues. The company will also likely provide an update regarding its planned launch of new flower and extract products in Poland and sustained rapid growth in patient population as new clinics open up in the UK, which it had mentioned during its fourth-quarter fiscal 2022 earnings call in September.
Aurora Cannabis’ performance in Germany is also likely to have been boosted by shipments of domestic medical cannabis, whose production has been going on in the country after the receipt of EU GMP certification in May. Also, the expanding market share in Germany on the back of its new product innovation is expected to be another top revenue contributor.
On the last earnings call, Aurora Cannabis confirmed that it expects a number of new medical markets to come online in fiscal 2023. The company is expected to provide an update regarding the same on the fiscal first-quarter earnings call. This raises our optimism about the stock.
Aurora Cannabis has been witnessing robust sales in its Canadian medical market over the past few months, driven by strength in net revenue per order and per participating patient resulting from a shift toward higher value insured patients. The stabilization in its Canadian adult recreational segment is likely to have continued in the fiscal first quarter on the back of strengthened product offerings in certain categories. Also, the company is expected to have meaningfully benefited from the Thrive acquisition, which continues to advance its premiumization strategy. These developments are likely to have significantly pushed up the fiscal first-quarter revenues of Aurora Cannabis.
Aurora Cannabis’ fiscal first quarter revenues are also likely to have been driven by the 13 SKUs launched across its recreational and medical channels in June. The company also confirmed to have a stack pipeline to serve it over the coming quarters.
However, the economic challenges that Germany is currently facing, like the war in Ukraine and the impact that it is having on energy prices and inflation, are likely to have weighed on Aurora Cannabis’ performance in the to-be-reported quarter. The company’s performance is also likely to have dampened due to the probable continuation of the limited supply of high-demand cultivars in Europe and a weakened euro, which was witnessed in the fourth quarter of fiscal 2022.
The Estimate Picture
For first-quarter fiscal 2023, the Zacks Consensus Estimate of $38.9 million for total revenues implies a decline of 18.6% from the prior-year quarter’s reported figure.
The consensus estimate for the bottom line is currently pegged at a loss of 9 cents per share.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, 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 currently carries a Zacks Rank #2.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle:
Cyclacel Pharmaceuticals, Inc. (CYCC - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank of 1. CYCC has an estimated growth rate of 5.6% for 2022.
Cyclacel Pharmaceuticals’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 28.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
AVEO Pharmaceuticals, Inc. has an Earnings ESP of +55.00% and is a Zacks #1 Rank stock. AVEO has an estimated growth rate of 53.4% for 2022.
AVEO Pharmaceuticals’ earnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 13.1%.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +21.62% and carries a Zacks Rank of 2 at present. GDRX has an estimated long-term growth rate of 16.4%.
GoodRx’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 19.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.