What to Expect When Tilray Reports After the Close

By Chris Lange Updated Mar 13, 10:24PM EDT · Published Mar 2, 11:20AM EST

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What to Expect When Tilray Reports After the Close — © Thinkstock

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.

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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.

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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.