Aurora stock tumbled Thursday after releasing quarterly results that disappointed, and the downfall has continued into today. Aurora Cannabis (TSX:ACB) (NYSE:ACB), which is the second-largest cannabis company, spoke on the news, saying it’s still in demand, despite missing earnings expectations. But the optimism isn’t felt across the board, with the company’s COO sharing a different perspective.
Aurora Stock Keeps Tumbling: COO Says Company’s Red-Faced
On Thursday, Aurora stock dropped more than 8%. The drop came after announcing that it brought in $98.9 million CAD in revenue in the fourth quarter. While this is a 52% increase from the last quarter, it still fell below analyst expectations; people foresaw the company reporting sales of $108.3 million CAD.
There were several positive takeaways, however, like the cost of production per gram declining. Michael Singer, Executive Chairman of Aurora Cannabis, also said he is “very confident” ACB will become profitable in 2020. But there is a level of embarrassment going around, and we can see why. Aurora Cannabis is a household name in the cannabis industry, and at one point was thought to do no wrong.
According to Cam Battley, the company’s COO, Aurora is feeling a little red-faced because of the results, going one step further by blaming ACB missing on its ancillary businesses. “If you’re asking if we’re a little red-faced, yes we are. If you take a look at our core business, our cannabis businesses, we came in exactly where we guided for which was between C$90 [million] and C$95 [million] and we came in at C$95 million.”
The Q4 earnings have been a clear blow to the company, and we can see that in the performance of Aurora stock Thursday and not just in the words of COO Battley. But is Aurora stock already regaining investor confidence? According to Yahoo Finance, ACB stock is trading up 0.17% on the New York Stock Exchange, and 0.90% on the Toronto Exchange.
Do you see Aurora stock trading in the green for the rest of the day? Can you see why Cam Battley said Aurora Cannabis is feeling a bit red-faced about the initial reactions to the company’s Q4 report? Let us know your thoughts in the comments below.
Featured image: PixaBay