Aphria Posts Biggest Rally This Year After Turning Profit
- Lumpy pot orders, marketing constraints could affect earnings
- Analysts impressed by 85% jump in net cannabis revenue
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Aphria Inc. surged as much as 34% Friday after the pot producer beat expectations on virtually all metrics. Analysts were particularly impressed with the 85% quarter-over-quarter jump in net cannabis revenue after the company had guided to flat performance.
However, analysts are split on whether Aphria’s turnaround is sustainable. Challenges remain, including an ongoing ramp-up of production facilities, lumpy pot orders, marketing constraints and guidance for the current fiscal year that’s reliant on second-half performance.