Aurora Cannabis (TSX:ACB) (NYSE:ACB) released its Q2 fiscal guidance this morning, and the ACB stock appears to be dropping as a result.
Let’s take a closer look at what happened to find out why.
ACB Stock Falls After Q2 Fiscal Report
This morning, Aurora Cannabis released its Q2 fiscal guidance. ACB stock immediately rose at the bell but has bottomed out since. The official figures will be published on Monday, February 11th, 2019. Today’s numbers were only preliminary and unaudited, so if you’re disappointed in them, they might still change by the time they come out officially. But, all things considered, there isn’t really any reason to be disappointed in them.
Aurora’s quarterly revenue, according to the company, breaks down as the following. For the period ending December 31st, 2018, Aurora anticipates its revenue for Q2 2019 to be around $50–$55 million (net of excise taxes). In Q2 2018, Aurora Cannabis brought in $11.7 million. In addition, the cannabis company brought in $29.7 million for Q1 2019.
“The results reflect an anticipated revenue growth rate in excess of 327% compared to Q2 2018 and in excess of 68% compared to Q1 2019,” the press release explains.
It remains unknown at this time why ACB stock has flipped, considering the revenue stats the company just provided its investors. Aurora states the revenue growth was driven by the adult consumer-use market in Canada. The cannabis company also provides medical cannabis to around 71,000 patients in Canada.
Aurora Cannabis Takes on CBD
During the rest of 2019, Aurora expects its new higher-margin products such as vape-ready CBD oil cartridges and softgels to contribute to its sustained gross margins. The company is awaiting the Canadian government’s decision on allowing higher margin products such as edibles, vape pens, and beverages to be sold in the Canadian cannabis adult-use market. This decision should be made sometime this year, and the company is ready to infiltrate the demand.
ACB Stock Movement
On the NYSE, ACB is currently trading at $5.06 a share, down -$0.20 (-3.87%). On the TSX, ACB is trading at $6.74 CAD, down -$0.25 CAD (-3.58%).
Were you disappointed by the Aurora quarterly revenue report?
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