Yahoo Finance Pot Takes a Hit as Aurora Cannabis Forecasts Weak Quarter
By Christiana Sciaudone
Investing.com -- Pot may be losing its potency. U.S.-listed Aurora Cannabis (NYSE:ACB) tumbled 25% after reporting weak sales guidance.
Cannabis net revenue for the first quarter of 2021 is expected to be between C$60 million and C$64 million, compared to C$67.56 million in the fourth quarter. In the fourth quarter a year earlier, Aurora reported cannabis net revenue of C$94.6 million.
The company expects adjusted gross margin before fair value adjustments on cannabis net revenue to be within a range of 46% to 50% and SG&A costs in the low C$40 million range.
Aurora reported a 4.5% quarter-on-quarter decline in fourth quarter net revenue to C$72.11 million.
Shares are down 79% in 2020.
Rivals also fell on the news, with Canopy Growth (NYSE:CGC) down 10%, Aphria (NASDAQ:APHA) lower by 3% and Cronos decreasing by almost 6%.
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