Tilray’s Q2: A Swing and a Miss

By Chris Lange Updated Jan 30, 5:25PM EST · Published Aug 13, 4:20PM EDT

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Tilray’s Q2: A Swing and a Miss — © OpenRangeStock / Getty Images

Tilray Inc. (NASDAQ: TLRY) released second-quarter financial results after markets closed Tuesday. The company said that it had a net loss of $0.36 per share and $45.9 million in revenue, compared with consensus estimates that called for a net loss of $0.25 per share and $41.11 million in revenue. The same period from last year had a net loss of $0.17 per share and $9.74 million in revenue.

Overall 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.

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

At the same time, 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.

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The company did not offer any guidance in the report. However, consensus estimates are calling for a net loss of $0.24 per share and $50.81 million in revenue for the coming quarter.

Brendan Kennedy, Tilray president and CEO, commented:

We are pleased with our second quarter results and strong business momentum. Our team has executed against our plan, with adult-use revenue nearly doubling in the second quarter compared to the first quarter and gross margin increasing sequentially for the second quarter in a row. As we continue to grow, we remain focused on our long-term strategic objectives and deploying capital to maximize stockholder value.

Shares of Tilray closed at $46.02, with a 52-week range of $24.00 to $300.00. The consensus analyst price target is $79.30. Following the announcement, the stock was down over 4% at $43.85 in the after-hours session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.