Something happened at cannabis company Aurora Cannabis (TSE:ACB) (NASDAQ:ACB) that hit its shares today. This is strange when considering that Aurora put out a very solid earnings beat with its latest earnings report. In spite of this clear win, Aurora shares plummeted nearly 7% in Thursday morning’s trading.
Aurora’s earnings came as a huge surprise to analysts, as it posted earnings of $0.11 per share. That’s not terrible in and of itself, but the news improves, and hugely, when compared against a Zacks estimate that looked for a loss of $0.18 per share. Not only were Aurora’s earnings over 161% what analysts looked for, but they also destroyed the figures from this time last year, when Aurora posted a loss of $1.50 per share.
And, in a surprise that might be better still, Aurora Cannabis posted a record high for earnings before interest, taxes, depreciation, and amortization (EBITDA) with this quarter’s figures.
Aurora Closed Out Its Fiscal Year with No Debt
That by itself should have been a reason to be impressed—a lot more impressed than the share price losses called for—but it actually got better. Aurora closed out its fiscal year with no debt on its cannabis business at all. All of its convertible debt has been repaid, according to CEO Miguel Martin, and Aurora actually saw the strongest fiscal year it’s ever had.
However, given that one of Aurora Cannabis’ big goals for 2025’s fiscal year is “…maintaining (the) goal of achieving positive free cash flow by end of calendar year 2024,” that may have proven a drag on share prices in today’s trading.
Is Aurora Cannabis Stock Worth Buying?
There are no analysts covering ACB stock currently, so we turn instead to the last month of trading. That figure has been in open decline, with little in the way of intervening rallies to pull the number back up. In fact, Aurora Cannabis shares have lost 24.9% over the course of the last month.
