Welcome to our Cannabis Earnings series where we break down the latest earnings to help you focus on the most important topics.
Introduction
Last week, Aphria (APHA) reported quarterly results and slashed fiscal 2020 guidance. While the market reaction was negative, we think the stock could have benefited more by doing away with the guidance altogether. We think the updated guidance still implies lofty expectations for profitability improvement which might prove to be unrealistic given current market conditions. Despite the mundane results, we think Aphria remains a top pick in Canada due to