Shares of Canadian recreational cannabis producer and distributor Aurora Cannabis (ACB) - Get Aurora Cannabis Inc. Report tumbled on Friday after the company became the latest cannabis concern to miss analysts' estimates in its most recent quarter.
In its quarterly announcement and so-called "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.
Aurora said it halted construction of its Aurora Nordic 2 facility in Denmark during the quarter, which it said will save approximately C$80 million over the next year. The company also reached an agreement with investors holding some C$155 million of its March 2020 convertible debentures to convert early at a lower price.
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 Canopy Growth Corporation 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 Tilray, Inc. Report , meanwhile, also reported worse-than-expected quarterly results this week, sending its stock tumbling, while shares of Cronos Group (CRON) - Get Cronos Group Inc Report also have been under post-earnings pressure.
Shares of Aurora Cannabis shares plunged nearly 15% to $2.81 a share in morning trading on Friday. They ended the trading day Thursday down 7.32% at $3.29.