Why Aurora Cannabis Fell 10.9% in August


2019-09-11 09:00:09 Motley Fool


Shares of Aurora Cannabis fell 10.9% in the month of August, according to data from S&P Global Market Intelligence. Aurora is one of the leading Canadian cannabis producers -- in fact, Aurora has the highest production potential of any cannabis company in the world. Therefore, Aurora's stock feels the heat whenever the overall cannabis sector falls out of favor. That's apparently what happened in August, as Aurora's big decline came not after any company-specific news, but rather after the earnings reports of peers Canopy Growth (NYSE: CGC) and Tilray (NASDAQ: TLRY). Image source: Getty Images. In early August, Aurora actually gave preliminary revenue numbers for the quarter ended June 30, though the company won't report official earnings until Sept. 12. Aurora expects revenue between $100 million and $107 million, compared to $19.1 million a year ago and $65.1 million in the March quarter. That was enough to please analysts, which initially pushed Aurora's stock up. However, in mid-August, Canopy Growth filed its earnings report, which missed both revenue and profit expectations by a wide margin. Tilray also delivered an earnings report that missed profit expectations, though it did beat analyst expectations for revenue. Of particular note was Tilray's reported 28% decline in average price per gram during the quarter. That may have led investors to believe that the Canadian market is oversupplied. It was odd that Aurora's stock declined so much with its peers after it had already given quarterly revenue numbers. Nevertheless, the whole sector has been under pressure in the second half of this year. Concerns about valuation, combined with a risk-off mentality in the markets, have weighed on all cannabis producers since the spring. Aurora officially reports fourth-quarter and full-year earnings on Sept. 12, when management will add additional color to the revenue guidance. Of note, Aurora recently won a big overseas contract in Italy in July, and also bought hemp and CBD company Hempco Food and Fiber Inc. for 63.4 million Canadian dollars in the middle of August. Of course, the most important thing for investors to monitor is the state of supply and demand in the Canadian market, as well as the ramp-up of Aurora's industry-leading production facilities.
根据标普全球市场情报公司(S&P Global Market Intelligence)的数据,8月份极光大麻的股价下跌了10.9%。奥罗拉是加拿大领先的大麻生产商之一——事实上,奥罗拉拥有世界上所有大麻公司中最高的生产潜力。 因此,每当整个大麻行业失宠时,奥罗拉的股票都会感到火热。这显然是8月份发生的事情,因为Aurora的大幅下跌并不是因为任何公司的具体消息,而是因为同行Canopy Growth(NYSE:CGC)和Tilray(Nasdaq:TLRY)的盈利报告。 图片来源:盖蒂图片社。 8月初,Aurora实际上给出了截至6月30日的季度初步收入数据,不过该公司直到9月12日才公布正式盈利。奥罗拉预计营收将在1亿至1.07亿美元之间,而去年同期为1910万美元,3月份为6510万美元。这足以取悦分析师,最初是分析师推高了极光的股价。 然而,在8月中旬,Canopy Growth提交了其盈利报告,该报告大大低于收入和利润预期。Tilray也发布了一份未达到盈利预期的盈利报告,不过它确实超出了分析师对收入的预期。特别值得注意的是,Tilray报告称,该季度每克平均价格下降了28%。这可能导致投资者认为加拿大市场供过于求。 奇怪的是,在奥罗拉公布季度营收数据后,其股价与同行的跌幅如此之大。不过,今年下半年整个行业都面临压力。自今年春天以来,对估值的担忧,加上市场上的避险心态,已经打压了所有大麻生产商。 Aurora将于9月12日正式公布第四季度和全年盈利,届时管理层将为营收指引增添额外色彩。值得注意的是,Aurora最近在7月赢得了一份在意大利的海外大合同,并在8月中旬以6340万加元收购了大麻和CBD公司Hempco Food and Fiber Inc.。 当然,投资者最需要关注的是加拿大市场的供需状况,以及极光行业领先的生产设施的增加。