Aurora Cannabis (ACB) to Post Q1 Earnings: What’s in Store?

Aurora Cannabis Inc. ACB is scheduled to report first-quarter fiscal 2021 results on Nov 9, before the opening bell.

In the last reported quarter, the company delivered an earnings surprise of 56.7%.

Q1 Estimates

For the fiscal first quarter, the Zacks Consensus Estimate for the bottom line is pegged at a loss of 25 cents per share.

Factors to Note

With the production and sale of cannabis been considered as essential services across Canada and Europe, the company is likely to have witnessed sustained consumer cannabis sales with the help of online ordering and home delivery. This, in turn, is likely to have benefited Aurora Cannabis’ fiscal first-quarter performance.

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

The company may have gained from its low cost per unit production, thereby aiding in creating a brand across multiple pricing tiers while delivering robust and sustainable margins.

Also, Aurora Cannabis is likely to have exhibited favorable results in its domestic and international medical businesses in the fiscal first quarter driven by continued investments in these businesses.

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

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 may have favored the fiscal first-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 might have aided 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 the case here.

Earnings ESP: Aurora Cannabis has an Earnings ESP of +7.37%. 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.

Other Stocks Worth a Look

Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.

SeaSpine Holdings Corporation SPNE has an Earnings ESP of +6.67% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Corbus Pharmaceuticals Holdings, Inc. CRBP has an Earnings ESP of +17.07% and a Zacks Rank of 3.

Medtronic plc MDT has an Earnings ESP of +0.97% and a Zacks Rank of 3.

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Medtronic PLC (MDT): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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