Shares of Aphria were up more than 13 percent in the first two hours of trading this morning. This came after the Leamington, Ontario-based cannabis company released surprisingly good financial results.
Aphria exceeded analysts' expectations by posting net income of $16.4 million in the first quarter and adjusted earnings before income tax, depreciation, and amortization of $1 million.
It's the second consecutive quarterly profit.
Net revenue rose 849 percent on the quarter to $126.1 million.
"Our success was also driven by our international business and the strength and growth of our brands, particularly Broken Coast, despite a small fire at our British Columbia facility at the end of the quarter," Aphria chairman and interim CEO Irwin D. Simon said in a news release. "This solid start to the year keeps us on track to achieve our fiscal year 2020 financial outlook."
As of this writing, Aphria shares are trading at $7.04. That's still off sharply from the 52-week high of $20.96.
Last last year, Aphria shares nosedived after short-sellers pounced on the company's deal to buy licences in Latin America owned by LATAM Holdings, claiming it paid far too high a price.