Aurora Cannabis Inc. (ACB) - Get Report shares were indicated sharply lower in pre-market trading Thursday after the Canadian marijuana group posted weaker-than-expected fourth quarter revenues as cannabis prices continue to decline following last year's move to legalize the sale of recreational cannabis.

Aurora said sales for the three months ending in June, the company's fiscal fourth quarter, rose 52% from the previous three month period to C$98.9 million ($75 million), falling just shy of the Street consensus of $78 million. Net revenues for the full year, Aurora said, rose 350% from the prior period to C$247.9 million.

Cannabis sales volumes over the April to June period, Aurora said, nearly doubled from the prior quarter to 17,793 kilograms, but average selling prices slipped 16.8% from the third quarter to C$5.32 per gram as lower-yielding recreational marijuana flooded the domestic market. 

"We continue to see strong growth in cannabis revenues in both medical and consumer categories. Our cultivation execution continues to drive production costs lower and improve gross margins," said CFO Glen Ibbott. "Aurora's diversified product portfolio remains in demand with patients and consumers alike. With the Canadian launch of derivative products in the coming months, we have made the necessary investments to ensure readiness and focus on a variety of value added products."

Aurora Cannabis's U.S.-listed shares were marked 8.8.% Thursday to change $7.76 each, a move that would trim the stock's year-to-date gain to around 20%.

"Although total net revenue of C$98.9 million was below our estimate of C$105.4 million, we note
that net sales of cannabis came in at C$94.6 million, up 61% QoQ and ahead of our forecast
of C$92.7 million for the period," said Canaccord Genuity analyst Matt Bottomley.

"The significantly higher sequential top line was supported by healthy growth in both its medical and recreational channels, in addition to an almost 10x increase in its bulk wholesales to other operators in the space that most likely utilized the biomass for extraction tolling arrangements with other LPs."