Aurora Cannabis’ Shares Drop Amid New Revenue Expectations
The Canadian firm offered investors a closer look into its unaudited results and confirmed it anticipates revenues between C$50 million and C$55 million for the quarter.
In its previous fiscal quarter which ended September 30, Aurora brought in C$29.7 million in revenue.
The actual results for the company will be made public February 11.
Aurora credited the growth due to the opening of the adult-use cannabis market in Canada, its presence in the medical market and an emerging international play through shipments of medical cannabis products.
Terry Booth, CEO of Aurora, said the company expects to see a strong demand from the recreational market.
“Aurora expects its production available for sale will be approximately 25,000 [kilograms] equivalent of cannabis in the Company’s Q4 2019, the period ending June 30, 2019,” the company said.
Management team for Aurora now believes the producer will be able to reach sustained positive earnings before income, taxes and amortization (EBITDA) starting in its fiscal Q4 2019.
Like many fellow producers, Aurora expects the Canadian market to expand in 2019 thanks to the introduction of edibles and other infused cannabis products into the Cannabis Act.
This change will allow the sale of vape pens, infused drinks and other popular cannabis edible items.
Despite the outlook from the company, stock of Aurora declined in value nearly five percent on Tuesday in Toronto. In New York, the company suffered a similar drop and had seen no change during after hours trading.
Aurora finished the day with a price of C$6.68 in Toronto and US$5.03 in New York.
Currently, Aurora’s Canadian shares hold a 13.33 average percent upside based on four analyst one-year price targets, according to analyst research aggregator site TipRanks.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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