The coronavirus pandemic has come as a hammer blow for a range of industries and the cannabis industry has not been an exception. Aphria (NASDAQ: APHA), which is one of the biggest cannabis operators in the industry, has proven to be one of the exceptions in that regard. Even though the ETFMG Alternative Harvest ETF has dived by 37% this year so far, Aphria’s performance has been a silver lining. Hence, it is perhaps worthwhile to perhaps take a closer look at the Aphria stock.
Some of the best-known names in the cannabis industry have seen their stocks sink owing to the pandemic. However, Aphria has not only managed to outperform its peers but also delivered impressive financial results.
Investors should note that the company has delivered a positive EBITDA over the course of the previous 5 quarters. On top of that, in the fiscal year 2020, Aphria has more than doubled its revenues. Hence, it is not a surprise that the stock has outperformed the sector.
One of the main reasons for Aphria’s commendable performance lies in the fact that its products are quite popular. It is one of Canada’s biggest cannabis companies and its vape products enjoy a 29% market share in the country. Additionally, the company has also managed to expand internationally and now has expanded its operations to South America and in Germany.
It is also important to note that Aphria is a well-liked stock among analysts as well. As per information from Tipranks, all the eight analysts tracking the Aphria stock have rated it as a ‘buy’ and target price average stands at $7.13 a share.
Earnings on October 15
The company is scheduled to release its next earnings report on October 15 and it goes without saying that many investors are excited about it. There are certain things that potential investors need to look for when the earnings report is released.
One of the most important things to look out for is the revenue generated from Aphria’s German-based distributorship CC Pharma. In the earnings report released on July 29, it emerged that CC Pharma contributed to CA$97.1 million of total sales, which stood at CA$99.1 million. Hence, the importance of this segment cannot be overstated enough.
The average selling price of cannabis dropped from CA$5.23 per gram from CA$5.47 gram in the fourth quarter. Net cannabis revenue dropped 4.5% as well and hit CA$53.1 million. So, it is going to be important for Aphria to possibly show an improvement in those numbers. Last but not the least, the net income and the EBITDA are also going to be closely watched.
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