uploads///ACBs Loss Per Share Estimates

Aurora Cannabis Is Expected to Report Wider Losses


May. 2 2019, Published 9:40 a.m. ET

Core profitability

The EBITDA, which is often considered to be a measure of core profitability, is expected to remain depressed for Aurora Cannabis (ACB). The company is scheduled to report its earnings next week. The company’s EBITDA is expected to be -24.7 million Canadian dollars—a rise from -22.5 million Canadian dollars in the third quarter of 2018.

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Increased expenses

The increase in selling, general, and administrative expenses along with marketing-related expenses is estimated to have a negative impact on the company’s core profitability. Most cannabis companies (HMMJ) including Canopy Growth (WEED), Tilray (TLRY), and CannTrust (CTST) are expected to report lower core profitability. The expenses in future growth will likely outweigh any income generated. The companies are hoping that the expenses towards expanding their footprint will quickly increase their scale and capture a big market share.

Aurora Cannabis is expected to report a loss in the upcoming quarter. The loss is expected to be 50.6 million Canadian dollars. Year-over-year, the loss is estimated to expand from a loss of 12.7 million Canadian dollars in the third quarter of 2018. The figure would translate into a loss per share of 0.06 Canadian dollars compared to 0.03 Canadian dollars in the third quarter of 2018. Aurora Cannabis closed at 12.1 Canadian dollars on May 1.


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