Investors were underwhelmed by the solid earnings posted by Aurora Cannabis Inc. (TSE:ACB) recently. We did some digging and actually think they are being unnecessarily pessimistic.
How Do Unusual Items Influence Profit?
For anyone who wants to understand Aurora Cannabis’ profit beyond the statutory numbers, it’s important to note that during the last twelve months statutory profit was reduced by CA$10m due to unusual items. It’s never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that’s exactly what the accounting terminology implies. Aurora Cannabis took a…
