Aphria is the king of cannabis stocks

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A lucrative first fiscal quarter has the company riding a wave of success

Canopy Growth may still have the largest market cap and an equity partner with extremely deep pockets, but it isn’t the only cannabis company to be looking at a bright future. In fact, based on the latest figures to come out of rival Aphria, it might not even be at the top of the list for too much longer. Aphria has released its revenue figures for the first fiscal quarter of 2020 and it has now seen two consecutive quarters of solid growth.

According to the data provided this past Tuesday, Aphria saw first-quarter net income of $12.48 million, an increase of around $400,000 over the previous quarter. That also represents an increase in its stock price quarter-over-quarter as the company continues to move upward.

Granted, part of the growth came from adjustments stemming from the sale of inventory and from growth in its biological asset operations. If it weren’t for these, Aphria would have been forced to report a small decline in net revenue, but this small decline would have still been better than what Canopy reported.

Aphria was expected to report a loss in share value; however, the analysts were wrong and the company continues to perform better than forecasts. The next quarter is also expected to see a boost and analyst Keith Speights explains, The company continues to expect net revenue for full-year fiscal 2020 of between CA$650 million and CA$700 million [$494 million and $532.9 million]. Distribution revenue from CC Pharma should make up a little over half of that amount. Aphria looks for full-year adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] of between CA$88 million and CA$95 million [$66.9 million and $72.3 million].”