Revenue Beat: Auxly Cannabis Group Inc. Exceeded Revenue Forecasts By 11% And Analysts Are Updating Their Estimates
It's been a good week for Auxly Cannabis Group Inc. (TSE:XLY) shareholders, because the company has just released its latest second-quarter results, and the shares gained 7.0% to CA$3.05. It was a mildly positive result, with revenues exceeding expectations at CA$46m, while statutory earnings per share (EPS) of CA$0.42 were in line with analyst forecasts. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Auxly Cannabis Group from sole analyst is for revenues of CA$181.0m in 2026. If met, it would imply a decent 9.3% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dive 35% to CA$0.21 in the same period. In the lead-up to this report, the analyst had been modelling revenues of CA$164.5m and earnings per share (EPS) of CA$0.17 in 2026. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for Auxly Cannabis Group
With these upgrades, we're not surprised to see that the analyst has lifted their price target 14% to CA$4.00per share.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Auxly Cannabis Group's past performance and to peers in the same industry. The analyst is definitely expecting Auxly Cannabis Group's growth to accelerate, with the forecast 20% annualised growth to the end of 2026 ranking favourably alongside historical growth of 15% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Auxly Cannabis Group to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Auxly Cannabis Group following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.
You still need to take note of risks, for example - Auxly Cannabis Group has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.