OGRMF - Aurora Rises Over 10 Percent on Preliminary Quarterly Update
Shares of Aurora Cannabis (NYSE:ACB,TSX:ACB) rose early on Tuesday (August 6) with the company’s release of preliminary results for the fourth quarter of its 2019 fiscal year.
The company had risen to C$9.51 by 9:40 a.m. EDT after opening at C$8.90 on the Toronto Stock Exchange — representing an increase of 13 percent. At 3:40 p.m. EDT, its share price sat at C$9.07.
Aurora’s update shows that estimated Q4 revenue from all sources will be between C$100 million and C$107 million, up from the C$65.1 million reported in the previous quarter. Estimates for net revenue from cannabis sales are between C$90 million and $95 million.
Aurora anticipates that total net revenue from this fiscal year will be between C$249 million and C$256 million, based on the unaudited review. The update also indicates that the company’s earnings before interest, tax, depreciation and amortization (EBITDA) is tracking positively, as is adjusted EBITDA from its cannabis operations.
The results are a marked increased from Q4 2018, when Aurora reported net revenue of C$19.1 million. Its Q4 statement for 2018 also discloses net revenue of C$55.2 million for the entire fiscal year.
“We are the leader in cultivation capacity, production available for sale and revenues for cannabis in the Canadian medical and consumer markets,” said Aurora CEO Terry Booth in Tuesday’s press release. “We continue to lead the build out of European and other international medical cannabis markets.”
The company’s European expansion includes the recent winning of the only public tender to supply medical cannabis to Italy. In April, Aurora also announced plans to build an indoor cannabis production facility in Germany after finalizing the public appeal process with the German Federal Institute for Drugs and Medical Devices.
Aurora expects that its final financial statement for 2019 will report between 25,000 an 30,000 kilograms of cannabis production available for sale.
Other cannabis heavyweights, however, have had disappointing results recently.
Canopy Growth (NYSE:CGC,TSX:WEED) reported a loss of C$323 million for the fourth quarter of its 2019 fiscal year. The news was followed by the firing of then-CEO Bruce Linton.
Organigram Holdings’ (TSXV:OGI,OTCQX:OGRMF) most recent quarter was also less than stellar. The company reported a net loss of C$10.2 million for Q3 compared to net income of C$2.8 million from the same quarter last year.
The average price target for Aurora on TipRanks puts the company at C$11, which is an upside of 22 percent from its current share price. Analyst consensus on the company has it currently listed as a “moderate buy.”
Aurora’s full results will be released on September 15.
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.