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Aurora Cannabis Stock Price Is Set to Form a Bullish Trend.  

Aurora Cannabis (NYSE: ACB) stock price breached the thirty days trading range amidst missing revenue and earnings estimates for the fourth quarter. The stock price was trading in the range of $5 over the last month.

The upside movement clearly reflects investors’ confidence in its business strategies and growth prospects.

ACB Aurora Cannabis Inc. daily Stock Chart

Aurora Cannabis stock price currently trades above $6.5, up slightly from a 52-weeks low of $4.5 and down sharply from a 52-weeks high of $12 a share.

Its revenue of C$98.9 million missed the consensus estimate by C$4.7 million. However, the revenue is up 52% from the past year quarter. Its revenue also increased by 61% from the previous quarter.

The revenue growth is driven by substantial growth in Canadian consumer cannabis revenue. Its medical cannabis revenue also increased by 10% Y/Y to C$29.7 million. The wholesale revenues stood around C$20.1 million.

The company has also demonstrated significant improvement in margins and production.

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Aurora’s cash cost to produce per gram sold dipped 20% from the previous quarter to $1.14 per gram. The production volume grew to 29,034 kgs, up 86% sequentially. It has also improved the gross margin by 3% to 58% from the year-ago quarter.

“We continue to see strong growth in cannabis revenues in both medical and consumer categories. Our cultivation execution continues to drive production costs lower and improve gross margins. Aurora’s diversified product portfolio remains in demand with patients and consumers alike, said Terry Booth, CEO.

The company expects to extend the revenue growth momentum in the next year. They believe the launch of new product in the following quarter would add to revenue growth.

The company expects revenue improvement from both consumer and medical markets. In addition, it expects steady improvement in adjusted EBITDA on quarter over quarter basis. This is due to improvement in revenue and gross margin. The recent financial numbers and solid outlook for the following quarters offer support to Aurora Cannabis stock price.

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siraj sarwar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.
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