Earlier this month, Aphria (NYSE: APHA) released its latest earnings results. And while there was a lot of excitement surrounding yet another profitable quarter from the company, that doesn't tell the whole story. Let's take a closer look at how the company performed in its first quarter of fiscal 2020 and whether its stock is as good a buy as it appears to be.
One of the challenges with Canadian marijuana stocks is that it can be hard to gauge the success of their companies' growth. A year ago, pot was just becoming legal in Canada, so year-over-year sales numbers reflect explosive gains. For instance, net revenues of 126.1 million Canadian dollars look incredible for Aphria in Q1 when compared against sales of just CA$13.3 million in the prior year.
Sales definitely helped Aphria improve its financials and generate a stronger gross margin than it did in the prior year. But that alone wasn't the reason for the company landing in the black.
Source Fool.com