Consumer Products

What to Expect When Tilray Reports After the Close

Tilray Inc. (NASDAQ: TLRY) is scheduled to release its most recent quarterly results after the markets close on Monday. The consensus estimates call for a net loss of $0.35 per share and $55.38 million in revenue. Last year’s fourth quarter reportedly had a net loss of $0.31 per share and $15.53 million in revenue.

In the third-quarter report, the company saw its revenues increase by 408.6% year over year, driven by the Canadian adult-use market, the Manitoba Harvest acquisition and growth in international medical markets as a result of the first GMP certification of the Portugal facility.

Also at that time, total kilogram equivalents sold increased over sixfold to 10,848 kilograms, from 1,613 kilograms in the prior-year period.

The average net selling price per gram decreased to $3.25 from $6.21 in the prior-year period. The average net selling price excluding excise taxes for adult-use was $2.98 per gram for the third quarter of 2019. The decrease was due to a shift in product and channel mix.

Looking ahead, 2020 cannabis sales may suffer, according to a recent analyst report from Cowen’s Vivien Azer. In the report, she suggests that cannabis sales may only reach $3.2 billion for the year, nearly a third lower than her original estimate. The question is whether Tilray will continue to see explosive growth in the fourth quarter and the 2020 full year.

Here’s what analysts had to say ahead of the report:

  • Cantor Fitzgerald has a Neutral rating and a $19.50 price target.
  • Merrill Lynch has a Neutral rating with a $20 target price.
  • Cowen’s Market Perform rating comes with a $20 price target.
  • Roth Capital has a Hold rating.

Excluding Monday’s move, Tilray stock had underperformed the broad markets with a retreat of about 16% year to date. In the past 52 weeks, the stock was down closer to 82%.

Tilray stock traded down nearly 5% Monday morning to $13.75, in a 52-week range of $13.20 to $79.99. The consensus price target is $24.00.