What to Watch in Tilray’s Q3 Report After the Close

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Tilray Inc. (NASDAQ: TLRY) is scheduled to release its third-quarter financial results after the markets close on Tuesday. Consensus estimates are calling for a net loss of $0.14 per share on $10.12 million in revenue.

This quarter saw a huge run for the stock, although it has mostly settled down since then. One of the driving forces for this run was an approval by the U.S. Drug Enforcement Agency (DEA) for Tilray to export cannabis to the United States for medical research purposes. A week prior to this, the company received approval to export medical cannabis flower to Germany. Tilray already had gained approval to export cannabis-derived oils to Germany.

Marijuana for legal recreational and adult use became legal last month in Canada, and that could drive Tilray sales higher. The company has struck deals with some Canadian firms to supply marijuana for use in recreational and adult-use products.

The party in marijuana stocks began in August with the announcement that beverage giant Constellation Brands had invested $4.2 billion in Canopy Growth, another Canadian grow company. Other big beverage makers like Molson Coors and, more recently, Coca-Cola reportedly were looking for partners as they weighed creating marijuana-infused drinks.

Excluding Tuesday’s move, Tilray has vastly outperformed the broader market, with its stock up over 400% since it came public. However, in the past 30 days the stock is down about 23%.

Only a handful of analysts have weighed in on Tilray ahead of the report:

  • Benchmark has a Buy rating with a $200 price target.
  • Cowen has an Outperform rating and a $172 price target.
  • Northland Securities has a Market Perform rating.
  • Roth Capital has a Neutral rating.

Shares of Tilray were last seen down fractionally at $113.06, with a post-IPO range of $20.10 to $300.00. The stock has a consensus analyst price target of $147.33.

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