Aurora Cannabis stock fell on Friday, even as the Canadian cannabis producer said it expects fiscal first-quarter sales and adjusted margins to come in at the high end of its expected range. Other marijuana stocks were mixed.
The company sees fiscal first-quarter net sales coming in at the upper end of expectations for 60 million to 64 million Canadian dollars. That is still down from the 67.5 million it made in the prior quarter.
Aurora Cannabis (ACB) has said that net sales would likely be made up almost entirely of cannabis, after divesting “noncore subsidiaries” during the prior fiscal year.
Aurora also expects adjusted gross margin to be at the high end of earlier views for 46%-50%. Sales, general and administrative costs for the quarter are expected to be in the low 40-million range, when excluding contract and employee termination costs.
Aurora Cannabis said it still expects to reach positive adjusted EBITDA in its second quarter. The Canadian cannabis producer had to push back that target this year as it wrestles with losses, disappointing sales and hefty charges as it tries to shrink its production footprint, align its supply with demand, and recognize what it said were “market realities.” Aurora last month announced a new CEO. But activist investor Nelson Peltz also resigned as a senior advisor. [Read more at Investor’s Business Daily]