Shares of Aurora Cannabis were falling early on Friday despite the company saying that it expects fourth quarter revenue to come in at the high end of its guidance for the period.
The Canadian cannabis company is expecting to report revenue at the high end of its previously announced $60 million to $64 million guidance for the September quarter.
However, a year ago, the company reported fourth quarter revenue of $67.5 million.
The company said that due to the divestiture of non-core subsidiaries during the year, net revenue for the quarter is expected to be comprised almost entirely of cannabis net revenue.
Aurora is scheduled to release earnings on Nov. 9.
The company also said it is expecting gross margins for the fourth quarter to be in the 46% to 50% range.
In September, Aurora announced that it could take a nearly C$2 billion goodwill impairment charge in the fourth quarter.
Those charges include previously announced fixed asset impairment charges that are now expected to be up to C$90 million and a charge of about C$140 million in the carrying value of certain inventory.
Aurora said that while its business prospects remain strong, international financial reporting standards dictate that the company take into account the impact of overall industry risk when assessing the fair value of its inventory.
It was also an eventful quarter for the company as it announced Miguel Martin as its new chief executive, replacing interim CEO Michael Singer, who stayed on as an executive chairman.
Aurora shares were falling 3.7% to $3.94 per share in early morning trading Friday.