Aurora Cannabis stock surges despite mixed quarterly results

Aurora Cannabis (ACB.US) stock surges over 9% despite the fact that the company posted mixed quarterly figures. Canada-based cannabis producer posted lower sales, but a smaller loss in the fourth quarter of 2021 than a year earlier. The company reported total net revenue of C$54.8 million ($43.4 million), which was flat sequentially and down 19% year over year. Analysts expected revenue of C$56.4 million. The company cited Covid-19 restrictions as a key reason for the drop. However, the company's medical cannabis revenue recorded a 9% increase year over year to C$35 million mainly thanks to 88% growth in its international medical business. Meanwhile, the company's EBITDA loss improved to C$19.3 million from a loss of C$33.3 million a year ago.  Aurora Cannabis CEO Miguel Martin said, “We are now delighted to announce a long-term supply agreement with Cantek in Israel that we expect to provide us with a steady stream of high-margin revenue that could also evolve into a larger partnership over time".

Aurora Cannabis (ACB.US) stock rose sharply during today's session and is heading towards a major support zone around $7.18 which is marked with the upper limit of the 1:1 structure, 200 SMA (red line) and upper limit of wedge formation. Source: xStation5