No notable earnings were reported late Friday or before markets opened on Monday. Last Friday morning, Carnival Cruises reported better-than-expected earnings per share (EPS) and revenue. EPS guidance for the company’s November quarter came in below analysts’ expectations. Bookings remained strong, but EPS and adjusted EBITDA guidance gave investors pause. The stock closed Friday down 5% and traded up by about 2.3% shortly after Monday’s opening bell.
A handful of notable earnings reports are due this week, ahead of the deluge due the following week. Here is a look at one firm, Tilray Brands Inc. (NASDAQ: TLRY), set to report quarterly results first thing Wednesday morning.
Shares of the cannabis grower have lost about 16% of their value over the past 12 months. Since posting a 52-week low in mid-June, however, the stock has added more than 50% to its share price, after more than doubling by mid-September. The burst was largely due to Tilray’s acquisition of six beer brands from Anheuser-Busch, continuing a diversification into alcoholic beverages.
In early September, a Senate committee was debating legislation that would give cannabis companies access to basic banking services like checking and savings accounts. Because the federal government still classifies marijuana as a Schedule I dangerous drug, banks have refused to offer the companies regular services. Last Wednesday, the committee voted to move the so-called SAFER Act for a floor vote. By then, however, the stock had lost half the gains it had piled up since June.
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Of 18 analysts covering the stock, 13 have a Hold rating and five have Buy ratings. At a recent price of around $2.40 a share, the upside potential to the median price target of $2.95 is 22.9%. At the high price target of $5.50, the upside potential is 129.2%.
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For Tilray’s first quarter of fiscal 2024, analysts are looking for revenue of $174.3 million, which would be down 5.4% sequentially but up 13.8% year over year. Analysts expect the company to post a loss per share of $0.06, compared to the prior quarter’s break-even finish, but better than last year’s first-quarter loss of $0.08 per share. For the full 2024 fiscal year ending in May, analysts forecast a loss per share of $0.22, compared to last year’s loss per share of $0.21. Full-year sales are expected to increase by 14.4% to $717.34 million.
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Tilray is not expected to post a profit in 2024, 2025 or 2026. The company’s enterprise value to sales multiple is 2.6 times in 2024, 2.4 times in 2025 and 2.2 times in 2026. The stock’s 52-week range is $1.50 to $5.12. Tilray does not pay a dividend, and the total return to shareholders last year was negative 16.78%.
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