Shares of Canadian recreational cannabis producer and distributor Aurora Cannabis (ACB) - Get 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 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.
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.