What to Expect When Tilray Reports on Tuesday

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Tilray Inc. (NASDAQ: TLRY) is scheduled to release its second-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for a net loss of $0.25 per share and $41.11 million in revenue. The same period of last year reportedly had a net loss of $0.17 per share and $9.74 million in revenue.

In the first quarter, Tilray reported that revenue increased 195% year over year, driven by the legalization of Canadian adult-use in 2018, the addition of hemp food sales from the Manitoba Harvest acquisition during the quarter, and strong growth in international medical markets.

Total kilogram equivalents sold increased over twofold to 3,012 kilograms from 1,299 kilograms in the prior-year period. Average net selling price per gram decreased to $5.60 from $5.94 in the prior-year period. The average net selling price excluding excise taxes was $5.28 (C$7.02) per gram for the first quarter of 2019.

Also during the quarter, Tilray said that it would be branching out and supporting two new clinical studies: one involving pediatric patients with severe behavioral problems and intellectual disabilities, and the other on immune activation in people living with HIV.

Specifically, one of these is a pilot study led by Murdoch Children’s Research Institute in Melbourne to evaluate the feasibility and acceptability of cannabis extract as a form of treatment for reducing severe behavioral problems in pediatric patients with intellectual disabilities. The second is a study with McGill University Health Centre’s Division of Infectious Diseases and Chronic Viral Illness to examine the effectiveness of medical cannabis on immune activation in people living with HIV.

Excluding Monday’s move, Tilray had underperformed the broad markets, with its stock down about 40% year to date. In the past 52 weeks, the stock was actually up 72%.

A few analysts weighed in on Tilray ahead of the report:

  • Consumer Edge has an Overweight rating and a $54 price target.
  • Compass Point has a Sell rating with a $38 price target.
  • Stifel’s Hold rating comes with a $37 price target.
  • Oppenheimer has a Market Perform rating.
  • Piper Jaffray rates it as Overweight with a $72 target.

Shares of Tilray traded down about 1% to $42.13 on Monday, in a 52-week range of $24.00 to $300.00. The consensus price target is $79.30.


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