Aurora Cannabis (ACB -8.38%) has been on a roll so far in 2019. Several analysts have jumped on the Canadian marijuana stock's bandwagon, and Aurora was selected as one of only three companies to receive licenses to cultivate medical cannabis in Germany.
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%.
As Chief Financial Officer Glen Ibbott hinted in the company's Q2 conference call, Aurora's production and shipments didn't slow down in the third quarter. The company's production volume in Q3 soared 99% from the previous quarter to 15,590 kilograms, with acceleration throughout the quarter.
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.