Tilray stocks slide following Canadian bud company posts mixed quarter

Tilray stocks slide following Canadian bud company posts mixed quarter - us-canada

Tilray‘s stock fell after the Canadian cannabis firm reported a wider-than-expected reduction for its next quarter after the markets closed Tuesday.

Here is what the company reported compared with what Wall Street was expecting, according to a poll of analysts by Refinitiv:

  • Adjusted earnings per share: A reduction of 32 cents vs. a loss of 25 cents expected
  • Revenue: $45.9 million vs. $41.1 million anticipated

Shares of the Canadian marijuana company slipped by over 7% in after-hours trading.

On an unadjusted basis, Tilray reported that a second-quarter net loss of $35.1 million, or 36 cents per share, wider than its loss during the same quarter a year of $12.8 million, or 17 cents per share.

After excluding for acquisition-related expenses and a stock accounting fee, Tilray dropped 32 cents per share, a steeper reduction compared to 25 cents per share analysts surveyed by Refinitiv anticipated.

Sales rose 371percent to $45.9 million, beating expectations of $41.1 million. Tilray attributed the growth to its acquisition of hemp food manufacturer Manitoba Harvest, Canada legalizing recreational marijuana this past year and growth in global markets, especially in Europe.

Tilray’s total kilogram equivalents sold attained 5,588 kilograms, tripling the 1,514 kilograms at the year-ago quarter. Purchasing farming facilities in Canada and Portugal increased Tilray’s prices and ate into the provider’s gross margin.

“The way we look at it is it’s early days, and we’re continuing to invest to build long-term value for our shareholders,” Tilray CEO Brendan Kennedy said on CNBC’s “Final Bell” on Tuesday.

“If we looked at individual countries like Canada, for instance, we could be profitable there within two quarters,” he added. “But when we look at one of the larger markets such as Europe, it’s still an opportune time to invest.”

Tilray will present its first CBD products with Authentic Brands at the U.S. at the second half of this year, Kennedy told analysts Tuesday on a conference call. In January, Tilray agreed to provide Authentic Brands Group  with CBD to use in goods from brands like Nine West, Prince Sports and Juicy Couture.

Tilray will “be ready” to present cannabis beverages in Canada in the end of the year when regulations allow, he said. Tilray entered a partnership with Anheuser-Busch InBev, the world’s biggest brewer, late last year to research cannabis-based drinks .

Kennedy said no matter who wins the U.S. presidential election next year, he anticipates that the U.S. to legalize marijuana. The business purchased Manitoba Harvest and, more recently, Smith & Sinclair to compete in the fast expanding U.S. CBD market.

“I think that the tide has really turned and it doesn’t really matter who’s president in terms of cannabis legalization,” he explained. “It’s really one of the few issues that has bipartisan support in Washington, D.C.”

Tilray stocks slide following Canadian bud company posts mixed quarter - us-canada

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