Consumer Products

What to Expect When Tilray Reports After the Close

Tilray Inc. (NASDAQ: TLRY) is scheduled to release its third-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for a net loss of $0.29 per share and $49.41 million in revenue. The same period of last year reportedly had a net loss of $0.20 per share and $10.05 million in revenue.

In the second quarter, revenues increased 371% year over year, driven by the Manitoba Harvest acquisition, the legalization of the Canadian adult-use market, and growth in international medical markets, particularly in Europe.

At the same time, total kilogram equivalents sold more than tripled to 5,588 kilograms from 1,514 kilograms in the prior-year period.

Also, the average net selling price per gram decreased to $4.61 compared to $6.38 in the prior-year period. The average net selling price excluding excise taxes was $3.92 per gram for the second quarter of 2019. The decrease was due to a reduced mix of higher-priced extract products and a greater mix of adult-use revenue, which are at lower prices per gram compared to other channels.

Excluding Tuesday’s move, Tilray had underperformed the broad markets, with the stock down about 69% year to date. In the past 52 weeks, the stock was down about 81.5%.

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

  • Cantor Fitzgerald has a Neutral rating and a $20 price target.
  • Jefferies has a Hold rating with a $25 target price.
  • Piper Jaffray has an Overweight rating and a $31 target.
  • MKM Partners rates it as Neutral with a $34 price target.
  • Cowen’s Buy rating comes with a $60 target price.

Shares of Tilray traded down about 4% to $20.90 on Tuesday, in a 52-week range of $20.20 to $120.40. The consensus price target is $37.00.