Categories AlphaGraphs, Earnings, LATEST, Other Industries

Earnings insights from Aphria’s fourth quarter 2019 conference call

After swinging to a profit on GAAP basis and reporting a rise in revenue for the fourth quarter of 2019, Aphria’s (NYSE: APHA, TSX: APHA) stock rallied 41% on NYSE and 40% on TSX. Let’s look at some important highlights of Aphria’s Q4 2019 earnings conference call.

Aphria (APHA) Q4 2019 earnings results

Extraction Center of Excellence

The Extraction Center of Excellence, which the company committed to complete in the month of June during third quarter earnings call, is nearing completion and this facility is located on the same property as Aphria Diamond, which requires Health Canada’s approval.

US Expansion Strategy

Aphria said that there are challenges in the US with regards to the legalization and it has got plans for the US, which includes partnerships, acquisitions and strategic alliances.

Read: Aurora Cannabis’ net loss widens in Q3 2019

Germany

The lot revenue from German license win is expected to start in fiscal 2021. In the interim period, the company believes that the EU-GMP facilities will be up and it expects to get additional revenue through Germany.

Canadian Cannabis Sales Guidance

On annualized basis, Aphria expects revenue of C$500 million, once all of its facilities are in full crop rotation at all facilities, and revenue of C$1 billion by the end of calendar year 2020.

Permanent CEO

There were no questions this time from the analysts on the search for a permanent CEO. Last quarter, Chairman and interim CEO Irwin Simon said that the company has not yet started the search for a permanent CEO.

Related: HEXO Corp (HEXO) disappoints in Q3 2019

Peers

Aphria’s strong performance lifted other cannabis producers’ stock prices on Friday. Cronos Group (NASDAQ: CRON), which reports its recently ended quarter results on August 8, ended up 8.7%. Tilray (NASDAQ: TLRY), Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), were up 7.2%, 8.2%, and 4.9%, respectively.

Based on the strong results from the final quarter of fiscal 2019 and the opportunities ahead, Aphria management showed optimism throughout the call.

Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top