The Canadian recreational cannabis company late on Thursday reported quarterly earnings and sales that missed analysts' forecasts, causing its shares to tumble.
In its quarterly earnings announcement and "action plan," the Edmonton-based company reported fiscal first-quarter net income of C$12.8 million ($9.85 million), or 1 cent a share, vs. C$105.5 million, or 12 cents a share, in the year-ago period. Analysts polled by FactSet had been expecting a loss of 4 cents a share.
However, the company posted a loss before interest, taxes, depreciation and amortization of C$39.7 million, wider than the C$20.8 million expected by analysts. Net revenue came in at C$75.2 million, below the average analyst estimate of C$90.6 million. Sales into the Canadian recreational market tumbled 33% to C$30 million.
"While the company strongly believes the global market opportunity for cannabis is robust, there is uncertainty in the timing of revenue ramp-up in our core markets, and we continue to invest in our global operations which may result in near-term challenges to achieving positive adjusted EBITDA," Aurora Cannabis said.
The hazy quarterly results come amid growing investor impatience with cannabis companies that aren't showing a clear, long-term path to profitability.
Canopy Growth (CGC) - Get Report on Thursday reported revenue that missed the lowest analyst estimate amid a large restructuring charge, sending its shares to their lowest since 2017. Tilray (TLRY) - Get Report , meanwhile, also reported worse-than-expected quarterly results this week, sending its stock tumbling, while shares of Cronos Group (CRON) - Get Report also have been under post-earnings pressure.
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