Aurora Cannabis sold a ton of weed last quarter. Nine metric tons, in fact.
Like the other Canadian pot producers reporting earnings Tuesday, Aurora increased sales strongly in its March quarter. Investors had worried that the recreational marijuana market was off to a slow start in Canada, but on Tuesday evening the Edmonton, Alberta-based Aurora Cannabis reported that its net revenue grew 20% from the December period, to reach 65 million Canadian dollars (or US$48.5 million) for the March period. Aurora’s recreational sales grew 37% sequentially.
“We achieved solid revenue growth and strong operating results in a quarter proven challenging across the industry,” Aurora’s chief executive Terry Booth said in the earnings announcement. The company will hold a conference call Wednesday at 10:30 a.m. E.T.
The dual-listed stock [ticker: ACB or ACB.Canada] was off 2.1% in after-hours trading, after it gained 4.5% Tuesday to close at $8.38 per share. Aurora Cannabis stock was down 2.7% in Wednesday morning trading, to $8.15 per share.
With most analysts rating the stock a Buy, Aurora stock has risen 70% this year to give it an $8 billion market capitalization. The average price target for the stock among analysts polled by FactSet is $10. [Read more at Barron’s]