Should Investors Buy Aurora Stock Before It Releases Year-End Results?

Aurora Cannabis (NYSE: ACB) is expected to release its year-end results later this week. The company has lost more than 20% of its value in just the past three months, so a strong finish to the fiscal year could help send the stock back up. Let's take a closer look to see whether this cannabis company could be a good buy before its latest earnings report comes out.

In August, Aurora gave investors an update on its operations in which it stated that based on preliminary and unaudited results, it expected sales for Q4 to come in between 100 million and 107 million Canadian dollars. That's more than five times what the company generated a year ago, back when the adult-use market in Canada hadn't yet opened for business. Those are some impressive sales numbers, and they would be even higher than what rival Canopy Growth (NYSE: CGC) was able to generate in its latest results, when it posted revenues of just CA$90.5 million.

As good as those sales numbers would be for Aurora, the problem is that this isn't new information anymore. When the company released that update on Aug. 6, the stock got a big boost, climbing as high as $7.20 that day. Effectively, those sales figures are now priced into the stock, and they're going to be the benchmark for analysts. Sales landing in the lower end of that range could have a negative impact on the stock. Sales would likely need to finish near the top end of the range for the share price to benefit from the impressive growth.

Source Fool.com