|Bid||5.92 x 1400|
|Ask||5.97 x 34100|
|Day's Range||5.80 - 6.00|
|52 Week Range||4.58 - 12.52|
|Beta (3Y Monthly)||2.85|
|PE Ratio (TTM)||27.55|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
This week, we saw Teva Pharmaceutical Industries Ltd (NYSE: TEVA ) make a big move in the cannabis industry, through a distribution deal between its subsidiary Salomon, Levin, Elstein, and InterCure Ltd ...
Thursday was not a good day to be invested in Canadian cannabis company Aurora Cannabis (ACB).Last month if you recall, Canada's second largest marijuana company lowered guidance for fiscal Q4 sales with an earnings pre-announcement warning that sales would range from only $100 million to $107 million. Wall Street assumed Aurora management was lowballing its estimates, though, with analysts' consensus expectations continuing to call for sales of $108 million heading into earnings.Instead, Aurora missed its own guidance range (and Wall Street's) entirely, reporting Wednesday evening that its actual sales for the final quarter of fiscal 2019 were only $98.9 million.Earnings were a disappointment, too. And to be clear, we're talking here not about actual GAAP earnings, but just the more lenient version -- earnings before interest, taxes, depreciation, and amortization -- that Wall Street has been focusing on all across the marijuana industry (in an implicit acknowledgement that none of these companies are going to be truly profitable anytime soon).In its Q3 earnings report, Aurora management had hinted that after several quarters of negative margins, it might finally turn EBITDA-profitable in Q4. Heading into earnings day, some analysts agreed that profitability was on the horizon -- while the consensus on Wall Street was that Aurora would report a slightly negative EBITDA of $4.1 million.As it turned out, EBITDA for the quarter was negative $11.7 million, far worse than anyone expected.Even that negative EBITDA number doesn't capture the full extent of how much money Aurora Cannabis is burning however. In a note following the earnings release, Seaport Global analyst Brett Hundley pointed out that Aurora increased the amount of cash spent on capital improvements by 73% year over year. The $167.4 million in capital expenditures made in the quarter, when added to the $4.6 million in negative cash from operations, resulted in total free cash flow of negative $172 million.With cash reserves dwindling, and no cash coming in from operations to offset them, Hundley warned: "Assuming overall cash burn remains at elevated levels" -- and Aurora management in fact confirmed that it will continue to spend heavily on capex through next quarter at least -- [then even "accounting for additional cash from its expanded credit facility and disposal of Green Organic Dutchman shares, the company has enough cash on hand [to fund only about] 2.4 quarters of operation."That gives Aurora barely half a year to figure out a way to make money selling marijuana -- or else issue and sell a bunch of new shares to keep itself solvent.Commenting on the results, BMO Capital Markets analyst Tamy Chen characterized Aurora's revenue miss as only "modest," and noted that "Aurora expanded its [recreational marijuana market] share in the quarter." (Aurora's market share in recreational weed is now 21.9%, up 340 basis points from last quarter).Nevertheless, the upshot of all the above is that both Seaport Global and BMO Capital are only willing to rate the stock "neutral" and "market perform," respectively -- both hold-equivalent ratings. Even after the stock fell 9.4% on Wednesday's news, neither one is willing to clamber out on a limb and recommend buying the stock.With sales failing to climb as expected, profitability still a ways away, and cash reserves dwindling, I cannot say as I blame them.Consensus VerdictUltimately, the word on the Street points to a sidelined majority on Aurora Cannabis. In the last three months, the cannabis stock has landed 3 ‘buy’ ratings vs. 5 ‘hold’ ratings. That said, the consensus average price target points to $9.06, or nearly 54% upside potential for the stock. This suggests that by consensus expectations, for now, the bulls still win on ACB.
The two largest pot companies in the world have developed secret formulas that predicts U.S. federal and state cannabis legalization.
Pot stocks faced pressure this week after Aurora Cannabis posted disappointing earnings, but Cowen analysts are mostly bullish on the sector as the firm initiated coverage of five other companies. Cresco Labs , Green Thumb and Curaleaf all received outperform ratings from Cowen with per-share price targets of $14, $18.
Aurora Cannabis posted its fourth-quarter earnings after the market closed on Wednesday. The company posted revenues of 98.9 million Canadian dollars.
High Tide Announces Opening of 1st KushBar Location Bringing its Total to 25 Branded Retail Cannabis Stores across Canada
Aurora Cannabis missed its own revenue estimates for the fourth quarter, but Chief Corporate Officer Cam Battley explains why it wasn't all bad news.
After a difficult few months for the cannabis sector, Aurora Cannabis (ACB) had an opportunity to turn around the sector stocks with a strong earnings report. The report was an utter failure with the company unable to even match preliminary results provided a month after the quarter closed. The stock will likely trade weak until the company can redeem itself with better numbers down the road.FQ4 Numbers As my preview summarized, Aurora Cannabis has already released preliminary FQ4 results. Those key metrics weren’t expected to be a focus with this report, but the company actually missed their guidance in a shocking move.For the June quarter, Aurora Cannabis reported these actual numbers in comparison to the preliminary numbers released on August 6: * Revenue – C$98.9 versus forecast of C$100 to C$107 million * EBTIDA – -C$11.7 million versus tracking toward positive EBITDA * Production – 29,034 kg versus up to 30,000 kgPossibly the most meaningful number was gross margins growing only 3 percentage points sequentially to 58%. The company actually sold 17,793 kg in the quarter, up from only 9,160 kg in the prior quarter.Revenues were up 52% sequentially from the prior quarter so one can immediately see a hiccup occurred during the quarter with the kg sold nearly doubling. The issue was the average net selling price down to C$5.32 per gram.The company used far more of the inventory available for sale in the quarter leaving only ~11,000 kg not sold. This means that far more of the inventory supply reported by Health Canada is attributed to competitors and not from Aurora Cannabis.Aggressive pricing from Canopy Growth and others could impact the targets of Aurora Cannabis going forward.What Happened?The biggest issue is that Aurora Cannabis had to ramp up wholesale revenues where the average net selling price per gram is only C$3.61 per gram. With medical cannabis selling at C$8.51 per gram, the difference between which channel sells the additional production makes a substantial difference to the bottom line.For the June quarter, wholesale revenues surged over 800% to C$20.1 million. Medical cannabis grew a minimal C$2.7 million sequentially with important EU dried cannabis sales at only C$4.5 million in the quarter.The end result was the average net selling price dipping to C$5.32 per gram, down from C$6.40 per gram. My previous estimates had the company needing 70% gross margins to reach EBITDA breakeven on 15,000 kg sold during the quarter.The company didn’t come anywhere close to these targets. Investors are left wondering what happened to the global medical cannabis thesis when bulk wholesale revenues now swamp EU medical cannabis sales.Investors should expect analysts to reign in current projections for September revenues toping C$120 and up to C$140 million in the December quarter. The focus will soon shift to the Cannabis 2.0 ramp at the start of next year. Based on the flop of the recreational cannabis rollout, investors should focus as much on the costs that might prevent Aurora Cannabis from eliminating the EBITDA losses.TakeawayThe key investor takeaway is that Aurora Cannabis reported a highly disappointing quarter. The company has even more capacity already online with quarterly production up at over 37,500 kg now questioning if pricing doesn’t head even lower.The stock has a market valuation approaching $6.5 billion again as the stock still trades near $6. With analysts likely cutting revenue estimates, Aurora Cannabis doesn’t deserve to trade above 10x FY20 sales estimates of $500 million.Unsurprisingly, investor sentiment is very negative, with individual portfolios in the TipRanks database showing a net pullback from ACB.Disclosure: No position.
Canadian cannabis company Aurora Cannabis Inc (NYSE: ACB ) reported fourth-quarter results Wednesday that fell short of the company's own expectations and received a mixed review from two Street analysts. ...
The U.S.-listed shares of Aurora Cannabis Inc. sank 9.2% in premarket trading, ahead of the cannabis company's post-earnings conference call scheduled for 9 a.m. Eastern. The company reported late Wednesday fiscal fourth-quarter revenue that missed expectations that had already been lowered. Stifel Nicolaus analyst Andrew Carter reiterated his hold rating, saying he believed the stock will remain under pressure given expectations of a capital raise in the coming months. "We believe Aurora will have to come to the capital markets by calendar 1Q20 for a significant ask to fund the aggressive growth agenda," Carter wrote in a note to clients. He believes that is likely to weigh on investors sentiment. The stock has lost 16.3% over the past three months, while the ETFMG Alternative Harvest ETF has slumped 20.8% and the S&P 500 has gained 4.2%.
Aurora Cannabis Inc. shares over 9% in premarket trading Thursday after the pot company missed revenue expectations even after trimming its forecast.
Aurora Cannabis shares were indicated sharply lower in pre-market trading Thursday after the Canadian marijuana group posted weaker-than-expected fourth quarter revenues as cannabis prices continue to decline following last year's move to legalize the sale of recreational cannabis.
Aurora Cannabis Inc. (ACB) delivered earnings and revenue surprises of 100.00% and 6.30%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Aurora’s stock slid more than 10% after the company reported June earnings, sustaining the blue mood that’s afflicted pot stocks this year.
Canadian pot producer Aurora Cannabis reported fiscal fourth-quarter sales after the close Wednesday that missed the company's own estimates, sending shares into retreat.
Canada became the first G7 country to legalize recreational marijuana late last year but sales have been dampened by supply constraints and higher prices than those on the black market. "We provided that guidance ... because we assumed there would be a more aggressive roll-out of retail outlets and if that was the case, we would have no problem reaching that milestone," Aurora Executive Chairman Michael Singer told Reuters. Cannabis companies in Canada including rivals such as Canopy Growth Corp have been spending heavily to expand and take a larger share of the nascent market, resulting in some surprising results that have spooked investors waiting for profitability.
Shares of Aurora Cannabis tumbled after the company missed revenue expectations, despite trimming its forecast earlier. Cam Battley, Aurora chief corporate officer, joins Zack Guzman and Akiko Fujita on 'The Ticker' to discuss how the pot company is looking to move forward.