- Aurora Cannabis reports earnings amid downbeat expectations.
- Investors are eyeing ACB's recovery plan in addition to raw numbers.
- Bargain-seekers are yet to appear for the marijuana stock.
Aurora Cannabis inc. has published its earnings report for its second fiscal quarter that ended in December, and the figures are dismal. The adjusted EBITDA losses nearly doubled from C$39.7 million to C$80.2 million. The marijuana firm did not detail its losses.
Cannabis sales came out at C$52.7 million, within estimates but down 26% from the previous quarter.
Its output fell by the same percentage, 26% to just under 31 tons while sales declines by 25% to around 9.5 tons. The price that ACB fetches for its cannabis slid to C$4.76, a decrease of 10%.
While these results are dismal, they have come one week after the Aurora replaced its CEO, announced impairment charges, reduced its market activity – and all but hinted at these results. The pot company is taking a hit for goodwill losses and is also scaling back operations outside its core Canadian market.
Aurora Cannabis Stock Price
Ahead of the news, ACB's share price on the Toronto Stock Exchange fell to the all-time lows of C$1.92, a figure already touched beforehand. These results may further weigh on the Edmonton based company's equity price.
Premarket trading is showing a drop of over 4%.
Update: After the initial drop, ACB's stock price is rising from the abyss. In New York, NYSE:ACB has hit a high of US$1.53, up from a low of $1.43.
Are bargain-seekers in play?
The Relative Strength Index on the four-hour chart is below 30 – reflecting oversold conditions that may lead to a correction. The round levels of 1.75 and 1.50 serve as support lines in the uncharted territory while 2.50 and 3.05 are resistance lines.
Marijuana stocks have been under pressure to deliver results and not only promises. The legalization of weed in Canada back in October 2018 has brought opportunities but also regulatory hurdles. While many US states have embraced weed, the absence of legalization at the Federal level is another hurdle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains bid around 1.1200, USD melts on tariff concerns
EUR/usd maintains its bullish stance well in place on Thursday, reaching the 1.1200 barrier and beyond on the back of intense selling pressure on the US Dollar, fuelled by concerns over the impact of Trump's tariffs on the US economy.
GBP/USD settles around 1.2950 on weaker Dollar
GBP/USD advances markedly and extends its breakout of the 1.2900 hurdle amid global trade war jitters and a severe sell-off in the Greenback, which was exacerbated following news of 145% US tariffs on China.
Gold resumes record rally, reaches $3,175
Gold extended its record rally on fresh tariff-related headlines, trading as high as $3,175 a troy ounce in the American session. The White House confirmed 35% levies on Mexico and Canada, 145% on Chinese imports, resulting in a fresh round of USD selling and pushing XAU/USD further up.
Cardano stabilizes near $0.62 after Trump’s 90-day tariff pause-led surge
Cardano stabilizes around $0.62 on Thursday after a sharp recovery the previous day, triggered by US Donald Trump’s decision to pause tariffs for 90 days except for China and other countries that had retaliated against the reciprocal tariffs announced on April 2.
Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.