Aurora Cannabis jumps as pot sales grow faster than expected

Yahoo Finance’s Emily McCormick joins Seana Smith to discuss the jump in Aurora Cannabis’ stock.

Video Transcript

SEANA SMITH: I want to turn to another stock that's on the move today, and that is Aurora Cannabis. Shares are soaring today up nearly 70%. Now this comes after the company reported quarterly results. Remember, though, this stock was off more than 90% in the past year before today's giant move to the upside. We have Emily McCormick now during the show with more on the earnings that we got. Emily?

EMILY MCCORMICK: Well, Seana, the key takeaways that we got from Aurora's earnings results and earnings conference call yesterday were when the company said that it was "firmly on track with its cost savings and capital expenditures her goals for the rest of the year." The company is targeting adjusted EBITDA profitability for the first fiscal quarter of 2021. Now we did still see Auroa post an adjusted EBITDA loss for the fiscal third quarter that it just reported, but those did narrow by 37% over the prior quarter to about 50.8 million Canadian dollars.

On the top line, we also saw sequential improvement in total net revenue to 75.5 million Canadian dollars. Also, better than the 56 million Canadian dollars from that quarter prior. We saw some really particular strength on the consumer side, so we had a consumer cannabis net revenue of 41.5 million Canadian dollars excluding provisions. And that was a 24% increase over the prior quarter. Really seeing a boost here, because this was the first full quarter that Aurora could benefit from rolling out cannabis 2.0 products in Canada.

So those were cannabis products across a wider range of form factors and delivery methods. They also noted that there was some pantry loading in March with the pandemic and with people beginning to stay at home. And they also noted, too, that their facilities in Canada and internationally continue to be fully operational since the company has designated its workers as essential throughout this pandemic. So taking a look at the stock here, we do have it soaring. It's at the highest level since March 31 at more than $11 per share getting that boost of about 68% in intraday trading. Seana?

SEANA SMITH: All right, Emily McCormick, thanks so much.