Shares of Canadian cannabis company Aurora Cannabis (ACB) - Get Aurora Cannabis Inc. Report closed higher Monday after the company reported a nearly 20% decrease in its fourth quarter cannabis net revenue.
The company reported total net revenue of C$54.8 million ($43.4 million), which was flat sequentially and down 19% year over year. Analysts polled by FactSet were expecting revenue of C$56.4 million.
The company's EBITDA loss improved to C$19.3 million from a loss of C$33.3 million a year ago.
Shares of Aurora Cannabis on Monday closed 7.3% higher at $6.39 in the regular session. The stock continued to rise slightly after hours.
"Given ongoing challenges in the Canadian adult recreational market, our broad diversification across domestic medical, international medical, and adult recreational segments provides us with underlying strength, stability, and growth opportunities in an evolving industry for global cannabinoids," CEO Miguel Martin said.
The company's medical cannabis business saw a 9% increase year over year to C$35 million with the increase being primarily attributed to 88% growth in its international medical business.
The company's consumer cannabis business saw a 45% decrease year over year to C$19.5 million.
Aurora Cannabis was recently downgraded to hold from underperform by analysts at Jefferies who also reduced its price target to C$8.56 per share.
The firm says that the company's operational weakness continues while a $1 billion shelf offering from March "means some kind of U.S. move is much more likely."
"The company is still losing money - its cash from operations seeing another outflow of C$66 million in the most recent quarter, and we do not see the company being Ebitda positive until fiscal year 2023," Bennet said, according to Seeking Alpha.