A rather weak earnings report was expected yesterday for the company Aurora Cannabis, but in a move that pretty much confirms its negative outlook, the company delayed the release without any explanation, while also laying off 8% of their workforce.
Even before these numbers were expected to come out, stocks across the board for Canadian companies were down. A smaller market share in the country, as well as very little progress happening in the US CBD industry are the main culprits.
Back in February, just on the heels of a Democrat inauguration in the U.S., things were looking up in the Canadian stock market. Since then, Aurora’s stock has fallen over 67%.
But they aren’t the only company in trouble. Tilray had to shut down a large facility in British Columbia just last week in order to cut costs.
A long term outlook for these companies is stronger than the short-term, however. It seems the slow nature of this process is what is most discouraging for the stock market. In Aurora’s case, a profit is eventually predicted…just not until 2023. Till then, their earnings reports and employee lay-offs will continue to offer the company a not-so-great look.
Aurora’s earnings report for Q4 and 2021 is now expected this upcoming Monday.