Aurora Cannabis Inc. shares declined nearly 10% in the extended session Wednesday after the pot company missed its earnings expectations even after avoiding forecasting.
Edmonton, Alberta is based in Aurora
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announced a fiscal fourth-quarter net loss of C $ 2.26 million in net income of C $ 98.94 million, with Ebitda's adjusted loss of C $ 11.7 million ($ 8.9 million). In a separate filing, Aurora said its net loss attributable to ordinary shareholders was less than C $ 200,000, and less than a penny, with the remaining losses attributed to uncontrolled interests of two subsidiaries.
Analysts polled by FactSet estimate adjusted losses of C $ 0.06 a share in profits of C $ 108 million. Last year in the same quarter, Aurora reported net income of C $ 79.9 million, or 17 cents a share, on net income of C $ 19.1 million. Aurora shares declined 9.9% during trading hours following the results.
Earlier this year, the Aurora executive stated that the company was on track to achieve some kind of profitability: On an adjusted basis, the company would post a positive figure for profit before interest , tax, deduction and amortization. Aurora has adapted the Ebitda figure for the transformation of biological assets, among other things.
But in August, the company appeared to step up the figure again, telling a news outlet that it was "on track" to achieve a positive Ebitda suit without mentioning a specific timeframe, as it had before. In a statement released on Wednesday's announcement, Aurora also stopped pointing to adjusted profitability, and instead "expects Ebitda to adjust to future growth due to expected revenue growth, gross improvement. margins and prudent growth of SG&A. "  Prior to the August guidance, analysts polled by FactSet estimated a quarterly revenue of C $ 111.9 million. In an August update, the company deflected expectations, telling investors it would now track book sales of C $ 100 million to C $ 107 million, net excise taxes, but it failed to hit that mark.
"In 2019 Aurora emerged as the global leader in cannabis production, research, innovation and the development of the international market," Chief Executive Terry Booth said in Wednesday's announcement. "We carry out all of our strategic priorities."
Aurora plans to hold a conference call with executives at 9am.
Aurora's fourth-quarter results came amid disappointment of top-line results from Canada's largest pot companies. Growing difficulties and packing plants contributed to the lack of start-up in legal cannabis recreation in Canada, as well as a relatively small number of retail locations in provinces such as Ontario, the most popular . other production assets ahead of last month's public offering, Aurora brought a significant amount of goodwill to its balance sheet, approximately $ 2.4 billion according to financial results. that quarter. It is difficult to determine when and if the company will write the value.
Although Aurora sold the stake to Green Organic Dutchman Holdings Ltd.
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for C $ 86.5 million on September 4, those shares were still in the books during the June quarter. The bottom line of the company is affected by the importance of a number of its investments in other cannabis companies, such as the Dutchman, and the swings in the sector.
US-traded shares of Aurora gained 30% this year, with the S&P 500 index
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increased by 18.9%.