Was it All Bad News in Aphria's Q1 Results?
Canadian marijuana company Aphria (NASDAQ: APHA) is often viewed as a (relatively) safe pot stock pick. Aphria's peers, including Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), have recently gone on acquisition and expansion sprees, scaring some investors away with rapid growth strategy implementation. These actions have made it hard for Aurora and Canopy to control their expenses and grow revenue high enough to achieve positive earnings before income, tax, depreciation, and amortization (EBITDA). Aphria has noted their examples, and is instead taking an asset-light approach to business and focusing on its core operations in Canada. However, Aphria's fiscal 2021 first-quarter results, reported Oct. 15, disappointed investors, and the stock dipped 18%.
Aphria's bottom line is what truly spooked investors. Losses for the quarter ended Aug. 31 came in at 5.1 million Canadian dollars compared to a net profit of CA$16.4 million in the year-ago period. But was it all bad news in the first quarter, or is it wise to buy this stock during its dive?
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Source Fool.com
