Shares in Aurora Cannabis Inc. declined during the extended session on Wednesday after the mortgage company missed revenue expectations even after losing its forecast.
Edmonton, Alberta-based Aurora
ACB, + 3.34%
ACB, + 3.15%
announced a fourth quarter net loss of $ 2.26 on net sales of $ 98.94 an adjusted Ebitda loss of $ 1
Analyzes examined by FactSet had estimated adjusted losses of $ 0.06 per share of revenue of $ 108 million. Last year, during the same quarter, Aurora reported net income of $ 79.9 million, or 17 cents per share, on net sales of $ 19.1 million. Aurora shares fell by approximately 9% in after-sales trading after the results.
Earlier this year, Aurora executives had said that the company was about to achieve some kind of profitability: On an adjusted basis, the company would post a positive figure for earnings before interest, taxes, depreciation and depreciation. Among other things, Aurora adjusts its Ebitda figure for biological asset change.
But in August, the company appeared to go back the figure and said in a news release that it was "on the way" to achieving a positively adjusted Ebitda without mentioning specific timeframes, as before. In its outlook in Wednesday's announcement, Aurora even stopped pointing to adjusted profitability, saying instead that it "expects adjusted Ebitda to continue to improve in the future due to expected revenue growth, gross margin improvements and cautious SG&A growth. . ” Prior to the August guidance, analysts surveyed by FactSet had estimated fourth quarter revenue to be $ 111.9 million. In the August update, the company dampened expectations and told investors it was now on track to book sales of $ 100 million to $ 107 million, excluding excise taxes, but it failed to hit that mark in the end.
"In 2019, Aurora took its place as the global leader in cannabis production, research, innovation and international market development," Chief Executive Terry Booth said in Wednesday's announcement. "We are implementing all our strategic priorities."
Aurora plans to hold a conference call with executives at 9 a.m. Thursday.
Aurora's fourth-quarter results arrive amid a swath of disappointing top results from the largest Canadian pot companies. The difficulties in growing and packaging the plant have contributed to the unclear beginning of legal recreational cannabis in Canada, as well as the relatively small number of retail locations in provinces such as Ontario, the most populous.
Like other cannabis companies that purchased cultivation and other production assets prior to recreation legalization last October, Aurora has a significant amount of goodwill in its balance sheet, approximately $ 2.4 billion, according to its third-quarter financial results. It is difficult to determine when and if the company will write down the value.
Although Aurora sold its stake in Green Organic Dutchman Holdings Ltd.
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for $ 86.5 million on September 4, these shares were still on the books during the June quarter. The company's end line has previously been affected by the value of a number of its investments in other cannabis companies, such as the Dutch, and swings in the sector.
Aurora in the US has traded 30% this year, with the S&P 500 index
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