Shares in Canadian cannabis company Aphria (APHA) are spiking 22% in Wednesday’s pre-market trading on the back of a strong earnings report. For the third quarter ending February 29, 2020, the company reported a net income of $5.7 million, or $0.02 per share, and an adjusted EBITDA of $5.7 million. This easily surpassed the FactSet consensus for a loss per share of 4 cents.
Most notably net cannabis revenue of $55.6 million in the third quarter marked an increase of 65% from the prior quarter.
About Aphria
Aphria may refer to:
Aphria (company), a medical cannabis company in Canada
Aphria (genus), a genus of fly
Aphria longirostris, a species of fly
Aphria Pops 22% In Pre-Market As Revenue Almost Doubles
About Pre-Market
Meanwhile, net revenue of $144.4 million in the third quarter translates into an increase of 96% from the prior year quarter and an increase of 20% from the previous quarter.
While the average retail selling price of medical cannabis decreased from $8.16 to $6.41 per gram in the quarter (due to a new compassionate pricing policy), the average selling price of adult-use cannabis increased to $5.47 per gram compared to $5.22 per gram previously.
Aphria Pops 22% In Pre-Market As Revenue Almost Doubles
“We are proud of our sustained growth in Canada and continued expansion of our international capabilities,” stated CEO Irwin D. Simon. “Going forward, we believe Aphria continues to be differentiated in the cannabis industry through our brands, cultivation expertise, high quality standards, cash position and balance sheet.”
Due to the growing uncertainty and the near-term financial impact of the coronavirus pandemic, Aphria also announced that it is suspending its previously announced guidance for revenue, of $575 million to $625 million, and adjusted EBITDA, of $35 million to $42 million, for fiscal 2020.
Overall, Tip Ranks reveals a bullish Strong Buy analyst consensus on APHA stock with 4 recent buy ratings vs just 1 hold rating. Meanwhile the average analyst price target stands at $6.31, with the stock currently at $4.50 in pre-market trading vs $3.64 at Tuesday’s close. (See Aphria’s stock analysis on TipRanks)
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