Aurora Cannabis shares fell 1.7 percent. After the trading hours on Monday, when the marijuana company reported its second quarter earnings, which was slightly better than Wall Street estimates, and roughly corresponds to the company's latest forecasts.
The Auroro report is the first of a series expected this week, and it can set the tone to expect from the industry during this quarterly results phase.
Back Story It was an event in 2019
(ACB). Month of January. Its stocks increased by 43 percent. Even after the sales guidelines for the second quarter fiscal recommendations sold 50 billion. This was lower than the forecast of two analysts covering shares; they expected $ 60 million. and 74.8 million This has helped Aurora announced last month about the acquisition of the medical-marijuana manufacturer Whistler Medical Marijuana for $ 175 million. However, the Aurora in 2018 35% decrease due to rising costs, while production and acquisition costs exceeded revenue growth. Adding to the anxiety: a lack of production, which made cannabis unable to meet the demand for weeds in Canada after the cup was legalized
Rotation of the plot: On Monday after the bell, Aurora reported about 54.2 million. USD 363% over the same period in 2018. but Aurora predicted last month.
However, the company also reported about $ 239.6 million. The net income ratio is aggravated by the losses associated with the company's investment in other industry players. Based on activity, Aurora lost $ 80 million in a quarter
One closely monitored number of Aurora cannabis production was well ahead of Wall Street's consensus. In the quarter, Aurora produced 7.8 mln. Kilograms compared to the expected 6.6 million Its production grew by 550 percent.
One wrinkle though: Aurora's price per kilo of cannabis has fallen by 21% year-on-year to $ 6.23, and the downturn that the company has blamed mainly on a new excise tax, as well as a "wholesale price structure for a Canadian consumer"
] In a press release announcing its profits, Aurora has marked its high market share.
"Based on available data published by Health Canada in 2019. In the second quarter, Aurora accounted for about 20% of total domestic sales, ”the company said.
Moving Forward: In the title of the announcement, Aurora shares closed 5.5% to 7.17 USD. From here, Wall Street will look for clues that the company can profitably support its rapidly growing business. Perhaps more than figures, investors would like to see that development costs are controlled, and new products such as soft gels and Vape-prepared CBD oil help profit margins.
Rival Canadian producers Tilray (TLRY) and Cronos Group (CRON) report their results on Tuesday. Canopy Growth (CGC) reports on Wednesday.
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