Categories Earnings, Health Care

Aphria stock sinks on disappointing Q3 bottom-line

Shares of Canadian cannabis company Aphria Inc (NYSE:APHA) fell 8.9% during the pre-market hours on Monday after it reported a third-quarter adjusted loss of $0.15 (C$0.20) per share, much wider than the loss of 4 cents per share expected by the street.

On a reported basis, the weed giant swung to a loss of $0.32 (C$0.43) per share, from a profit of $0.06 (C$0.08) per share in the same quarter last year.

Net revenues, meanwhile, jumped more than seven times to $55.2 (C$73.6) million, driven by CC Pharma and ABP. Analysts were expecting $41.1 million.

aphria earnings and revenue trend

 

During the quarter, the company saw a decline in cannabis revenue as well as kilograms sold, primarily due to operational transition and temporary distribution challenges, the company said.

The Aphria Board also announced the appointed two new independent directors, effective today. Walter Robb and David Hopkinson will fill two of the three current director vacancies.

In a separate release earlier today, the Ontario-based company said it has entered into a series of transactions that will accelerate the expiry date for the take-over bid by Green Growth Brands to April 25, 2019, and will terminate the arrangements with GA Opportunities Corp. for $89 million. In December, Aphria rejected Green Growth Brands’ $2.1 billion (C$2.8 billion) buyout offer stating that the latter’s proposal undervalued the former.

Late last year, Aphria shares got hammered following a report from Hindenburg Research, which stated that Aphria’s LATAM acquisition is worthless and accused that a network of insiders of Aphria diverted funds from shareholders and put them into their own pockets.

READ: EARNINGS OF BANK OF AMERICA, IBM, UNITED AIRLINES, PEPSICO ON QUEUE

The Canadian government has committed to regulating the sale of cannabis-infused products in 2019. Based on customer behavior and product preferences demonstrated in other existing legal markets, the Ontario, Canada-based cannabis firm believes cannabis-infused products could represent more than 50% of the total cannabis market upon becoming federally legal in Canada.

Earlier this month, Aphria’s German subsidiary received a license for the domestic cultivation of medical cannabis. Cannabis companies have started focusing on the beauty area. On April 1, Aphria launched CBD-based cosmetics product in the German market.

The stock, which started trading on the NYSE on November 2, 2018, has gained 81% since the beginning of this year.

 

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

 

Most Popular

Citigroup (C) reports higher revenue and profit for Q2 2024; earnings beat

Banking behemoth Citigroup Inc. (NYSE: C) Friday reported an increase in revenue and net income for the second quarter of 2024. Earnings came in above analysts’ estimates. Net profit for

Wells Fargo (WFC) Q2 2024 Earnings: Key financials and quarterly highlights

Wells Fargo & Company (NYSE: WFC) reported its second quarter 2024 earnings results today. Total revenue rose 1% year-over-year to $20.7 billion. Net income dropped 1% to $4.9 billion while

JPM Earnings: All you need to know about JPMorgan’s Q2 2024 earnings results

JPMorgan Chase & Co. (NYSE: JPM) reported second quarter 2024 earnings results today. Reported revenue increased 22% year-over-year to $50.2 billion. Managed revenue rose 20% to $51 billion. Net income

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