Aurora Cannabis (NYSE: ACB) reported fourth quarter 2019 results and the topline missed the company’s estimates. ACB stock, which closed up 3.34% at $6.49 today, dropped about 8% in the extended trading session.
For the fourth quarter of 2019, Aurora reported a net loss of C$2.26 million on revenue of C$98.9 million. Adjusted EBITDA loss was C$11.7 million for the quarter ended June 30, 2019.
In early August, the company reported that it anticipates net revenue for the fourth quarter of 2019 to be between C$100 million and C$107 million. When reporting Q3 results in May, Aurora said that it is well positioned to achieve positive EBITDA beginning in fiscal Q4 2019.
During Q4 2019, Aurora produced 29,034 kilograms of cannabis compared to 15,590 kilograms in the prior quarter. The company sold 17,793 kilograms of cannabis compared to 9,160 kilograms in the third quarter of 2019.
“We are working to extend our reach in the U.S. markets. Our partnership with the UFC is a basis to explore CBD-from-hemp and hemp food products. We are also exploring additional opportunities and leveraging our Strategic Advisor. We are focused on building a sustainable, high-margin business while providing patients and consumers with access to safe and reliable medicine,” said CEO Terry Booth.
Also read: Village Farms International (VFF) swings to profit in Q2
Aurora expects to have a robust product line-up ready to launch in December. Given the very early stage of development of the consumer market in Canada and international medical markets, the company anticipates that quarter to quarter sales volumes and revenues may be volatile. Aurora expects adjusted EBITDA to continue to improve in the future due to expected revenue growth, improvements in gross margin and prudent SG&A growth.
Shares of Aurora Cannabis have gained 31% since the beginning of 2019 and dropped 7% in the past 52 weeks. The stock closed today at $8.38, up 4.49%.