Aurora misses estimates
Aurora Cannabis (ACB) reported its Q3 earnings after the market closed on May 14. The company reported a loss per share of $0.16, which missed analysts’ estimate of $0.06. The company’s stock sank almost 2.2% after the earnings release.
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While the company missed its bottom line, it delivered a sales growth of about 20% and also saw an incremental improvement in its gross margins. The gross margins grew to 55% from 54% in the previous quarter, which is more comparable, as that quarter also reflected recreational cannabis sales in Canada.
The company’s increased SG&A (selling, general, and administrative expenses) weighed down the bottom line. To put it in perspective, the company reported SG&A expense of $67 million, which grew from $66.3 million in the previous quarter. In its press release, the company stated, “With disciplined cost management, the Company expects SG&A costs to grow modestly over the remainder of the fiscal year.”
Overall, the company reported a net loss of $158 million as the company continued to incur expenses to expand its facility. In comparison, the company posted a net loss of $237 million in the second quarter.
Tilray (TLRY), which also reported its earnings on May 14, delivered a loss per share of $0.32. The cannabis sector ETF Horizons Marijuana Life Sciences ETF (HMMJ) was up almost 3.4%, while Canopy Growth (WEED) and HEXO (HEXO) were up 3.5% and 4.7%, respectively.