Aurora Cannabis stock drops after earnings as revenue misses revised target

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Aurora Cannabis stock drops as revenue misses revised target

The Edmonton, Alberta-based Aurora ACB, +3.34% ACB, +3.15% announced a fiscal fourth-quarter net loss of C$2.26 million on net revenue of C$98.94 million, with an adjusted Ebitda loss of C$11.7 million . In a separate filing, Aurora said that its net loss attributable to common shareholders was less than $200,000, and less than a penny a share.

Earlier this year, Aurora executives had said the company was on track to achieve a sort of profitability: On an adjusted basis, the company would post a positive figure for earnings before interest, taxes, depreciation and amortization. Aurora adjusts its Ebitda figure for biological asset transformation, among other things.

Prior to the August guidance, analysts polled by FactSet had estimated fourth-quarter revenue of C$111.9 million. In the August update, the company tamped down expectations, telling investors that it was now on track to book sales of C$100 million to C$107 million, net of excise taxes, but it failed to hit that mark in the end.

Much like other cannabis companies that purchased cultivation and other production assets ahead of recreational legalization last October, Aurora carries a substantial amount of goodwill on its balance sheet, roughly C$2.4 billion according to its third-quarter financial results. It’s difficult to determine when and if the company will write down the value.

 

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