Aurora Cannabis tumbles double digits after saying it won’t turn a profit until next year as weed-industry earnings flag (ACB)

September 12, 2019

Cannabis

Aurora Cannabis sank as much as 11% on Thursday after missing analyst earnings estimates and pushing its profitability target to fiscal 2020.
The company’s disappointing fiscal fourth-quarter figures mirror other cannabis companies. Canadian peer Canopy Growth missed quarterly expectations in August, with revenue falling under the lowest analyst estimate.
Aurora previously forecast positive earnings would arrive in its fiscal fourth quarter. The cannabis producer’s executive chairman now sees the metric turning positive in fiscal 2020, Reuters reported.
Watch Aurora Cannabis trade live here.

Aurora Cannabis dropped as much as 10% on Thursday after posting disappointing earnings data and pushing its profitability goal into the next fiscal year.

The world’s second-largest cannabis company posted fiscal fourth-quarter revenue figures below analyst estimates, despite revising its forecast lower in August. The move mirrors Canopy Growth’s August 15 earnings drop, as revenue landed below the lowest analyst estimate.

Here are the key numbers (in Canadian dollars):

Adjusted EBITDA loss: $11.7 million, versus the $5.6 million estimate

Net revenue: $98.9 million, versus the $107.9 million estimate

Gross margin: 58%, versus the 60.7% estimate

Aurora executives also walked back previous predictions of profitability in 2019, pushing the goal to the next fiscal year. The company forecasted positive EBITDA for its fiscal fourth quarter at the start of 2019, but went on to omit the same time frame in an August news release, simply saying the company was “on track” to reach the goal in the future.

The Wednesday earnings report pulled further away from its original guidance, missing the forecasted metric and saying it expects adjusted EBITDA “to continue to improve in the future.” Aurora’s chairman set a wider expectation for the next fiscal year, Reuters reported.

“We provided that guidance … because we assumed there would be a more aggressive roll-out of retail outlets and if that …read more

Source:: Business Insider

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