Aphria Inc.’s APHA fiscal fourth-quarter 2020 results are scheduled to release on Jul 29, after the closing bell. In the last reported quarter, the company delivered earnings surprise of 150%.

Q4 Estimates

The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $102.3 million, indicating an improvement of 6.4% from the year-ago reported figure.

Factors to Note

Higher demand of medical and adult-use cannabis products is likely to have contributed to Aphria’s net revenues in the to-be-reported quarter attributable to. Per the fiscal third-quarter earnings call, cannabis consumption has returned to a more normalized pre-COVID-19 levels for all regions with the exception of Quebec where cannabis sales remain at an even higher level.

This, in turn, might have benefited the company’s fiscal fourth-quarter performance.

Aphria is likely to have gained from an enhanced global team, brand-building activities, new facility and production abilities, and investment in new systems and technology.

In the fiscal third quarter, the company exhibited its strength as a leading producer with both Aphria One and Aphria Diamond being fully licensed and operating at full capacity. Consequently, this may get reflected on the company’s fiscal fourth-quarter results.

Aphria possesses compelling brands for patients and consumers across broad demographics, which includes five high-quality brands including Solei RIFF, Good Supply, Broken Coast and Aphria medical brand. These are likely to have favored the company’s fiscal fourth-quarter performance.

During the fiscal third quarter, the company received its European Union Good Manufacturing Practices (EU GMP) certification from the Malta Medicines Authority (“MMA”) at the company’s subsidiary, ARA – Avanti Rx Analytics and GMP annex at the Aphria One facility. This enabled Aphria to commence supply of medical cannabis throughout the European Union and bolstered its international export capabilities.

This might have positively impacted the company’s performance in the to-be-reported quarter.

Here’s What the Quantitative Model Suggests

Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see below.

Earnings ESP: Aphria has an Earnings ESP of -66.67%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Aphria carries a Zacks Rank #3.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

Integra LifeSciences Holdings Corporation IART has an Earnings ESP of +20.69% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Exact Sciences Corporation EXAS has an Earnings ESP of +6.69% and a Zacks Rank of 2.

Hologic, Inc. HOLX has an Earnings ESP of +14.56% and a Zacks Rank of 3.

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