Consumer Products

What Analysts Are Saying About Tilray After Earnings

Tilray Inc. (NASDAQ: TLRY) reported its most recent quarterly results after the market closed on Monday, and investors were not happy. Analysts were not entirely sold on results and many took to the sidelines on this cannabis company.

The firm posted a net loss of $0.66 per share and $50.4 million in revenue, compared with consensus estimates that called for a net loss of $0.27 per share and $55.02 million in revenue. The same period of last year reportedly had a net loss of $0.36 per share and $41.11 million in revenue.

Despite a challenging business environment, management said that it generated healthy year-over-year revenue growth, and it significantly reduced the cost structure and cash burn.

Total cannabis kilogram equivalents sold increased 105% to 11,430 kilograms from 5,588 kilograms in the second quarter of 2019. Total cannabis kilogram equivalents sold increased 84% to 10,294 kilograms from 5,588 kilograms in the second quarter of 2019. The increase was primarily due to a one-time bulk transaction associated with the termination of a supply contract.

Average cannabis net selling price per gram decreased to $2.64 from $4.61 in the second quarter of 2019 and $5.28 in the first quarter of 2020. Average cannabis net cost per gram decreased to $2.06 from $3.86 in the second quarter of 2019 and $3.97 in the first quarter of 2020.

Here’s what a few analysts had to say about Tilray after the report:

  • Cantor Fitzgerald reiterated a Neutral rating and cut its price target to $7.90 from $8.00.
  • Northland Securities reiterated a Hold rating.
  • Oppenheimer reiterated a Hold rating.
  • Cowen reiterated a Market Perform rating and cut its price target to $8.50 from $9.00.
  • Piper Sandler reiterated an Overweight rating and cut its price target to $15 from $20.
  • Benchmark reiterated a Buy rating and cut its price target to $12 from $14.

Tilray stock traded down about 13% to $6.90 on Tuesday, in a 52-week range of $2.43 to $46.25. The consensus price target is $8.81.

The move from Tilray also prompted a small move on the ETFMG Alternative Harvest ETF (NYSEARCA: MJ). The fund was last seen down nearly 1% at $12.85, in a 52-week range of $8.81 to $28.93.