But the company’s momentum was put to the test on Tuesday when Aurora announced its fiscal 2019 third-quarter results after the market closed. As it turned out, Aurora passed that test, delivering strong Q3 growth. Shares rose nearly 3% in after-hours trading Tuesday evening.
Aurora reported Q3 gross revenue of CA$75.2 million. This reflected a year-over-year increase of 367% and a quarter-over-quarter increase of 21%. Net revenue, which excludes excise taxes, came in at CA$65.1 million, up 305% year over year and 20% quarter over quarter. The consensus analysts’ revenue estimate for Q3 was around CA$68.5 million.
The company announced a net loss in the third quarter of CA$158.4 million, or CA$0.16 per share. Aurora’s bottom line improved from the second quarter net loss of CA$237.8 million but widened considerably from the net loss of CA$19.2 million reported in the prior-year period. The consensus analysts’ estimate was for a loss of CA$0.04 per share.
Aurora’s consumer net revenue in Q3 totaled CA$29.6 million, up 37% from the previous quarter. The company reported medical cannabis net revenue of CA$29.1 million, a year-over-year increase of 169% and a quarter-over-quarter increase of 12%.
Aurora expects that its production available for sale in the fourth quarter will exceed 25,000 kilograms. It also anticipates that operating costs will continue to decrease and that it will achieve positive EBITDA next quarter. “With a solid Q3 on all fronts, it’s time to move the yardsticks for the industry again,” Ibbott said, summing up Aurora’s third quarter and its outlook.
The ETFMG Alternative Harvest ETF (MJ) was trading at $33.74 per share on Wednesday afternoon, up $0.45 (+1.35%). Year-to-date, MJ has gained 3.74%, versus a 7.35% rise in the benchmark S&P 500 index during the same period.
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