Aurora Cannabis Issues Below-Consensus Q2 Revenue Guidance
Canadian cannabis producer Aurora Cannabis Inc (NYSE:ACB)'s shares were trading lower Tuesday after the company issued below-consensus revenue guidance for the fiscal second quarter.
The company said it expects to report revenue between $50 million and $55 million for the fiscal second quarter ended Dec. 31. This figure is higher than than the $11.7 million posted for the same period last year and the $29.7 million reported in the previous quarter.
The expected revenue is significantly lower than the $67 million analysts were projecting.
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Why It's Important
On Oct. 17, Canada legalized marijuana for recreational use, and Tuesday's guidance is Aurora's first to reflect the country's legal weed market. The company said the increase in its second-quarter revenue was due to the launch of the adult-use market in Canada and shipments of medical marijuana to around 71,000 patients.
Aurora said it's reached a production capacity of around 100,000 kilograms — approximately 220,500 pounds — per year, up from 70,000 kilograms in November.
Aurora is scheduled to release its Q2 report Feb. 11.
The company indicated it plans to increase production capacity to 150,000 kilograms by the end of the current quarter.
Aurora shares were down 3.52 percent at $5.08 at the time of publication Tuesday.
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