What Tilray’s Earnings and Expansion Mean Going Forward

By Chris Lange Updated Jan 30, 11:18PM EST · Published Mar 19, 9:05AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

What Tilray’s Earnings and Expansion Mean Going Forward — © Dmitry_Tishchenko / Getty Images

When Tilray Inc. (NASDAQ: TLRY) released its most recent quarterly results after the markets closed on Monday, the cannabis firm said that it had a net loss of $0.33 per share on $15.5 million in revenue. That compared with consensus estimates that called for a net loss of $0.12 per share and $14.45 million in revenue.

During the quarter, sales increased 203.8% year over year, driven by bulk sales, inaugural sales in the Canadian adult-use market and accelerated wholesale distribution in export markets.

Total kilogram equivalents sold increased almost three-fold to 2,053 kg from 694 kg in the prior year period. Also, the average net selling price per gram increased to $7.52 from $7.13 last year.

Highlights from this past quarter include an expanded strategic alliance with Sandoz, a subsidiary of Novartis, to increase access to medical cannabis products to patients in need across the world. Tilray also announced a long-term revenue-sharing agreement with Authentic Brands Group to leverage its portfolio of brands and develop, market and distribute consumer cannabis products. This global partnership will focus on cannabidiol (CBD) products in the United States and THC (tetrahydrocannabinol) and CBD products in Canada and elsewhere as regulations permit.

[nativounit]

Brendan Kennedy, president and CEO of Tilray, commented:

2018 was a very successful year for Tilray with many corporate milestones. Our team made significant progress on our long-term initiatives including increasing production capacity, expanding and strengthening strategic partnerships, and acquiring complementary businesses to accelerate our future growth and leadership position in medical and adult-use cannabis. Looking ahead, we remain committed to pursuing global growth opportunities and will be disciplined in deploying capital, particularly in the United States and Europe, where we believe we have multiple paths for value creation.

Shares of Tilray closed Monday at $72.24, in a 52-week range of $20.10 to $300.00. The consensus price target is $117.20. Following the announcement, the stock was up about 3% to $74.49 in early trading indications Tuesday.

[recirclink id=535281]

[wallst_email_signup]

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.