Tilray share price up 1% after Q4 earnings revenue beat

The marijuana company's stock is up after a better-than-expected earnings report.

Tilray share price has risen after a positive earnings report. The Canadian marijuana company had high sales and worse-than-expected losses as well.

Tilray earnings:key figures

Revenue $15.5 million
Sales $43.1 million
Kilograms of marijuana sold 6,478
Net loss $31 million

Tilray share price up 1% as earnings revenue beats estimates

Tilray’s Q4 revenue was $15.5 million, an astonishing 200% increase. Tilray’s revenue exceeded Wall Street’s prediction of $14.1 million. The cannabis company also had a sales surge of $43.1 million, a 110% growth. Purchases of kilograms of marijuana grew to 6,478 from 3,024 in 2017.

The corporation’s sales grew because of an increase in exports to the US and Europe. There was also a jump in sales in Canada, which recently legalised recreational marijuana. The marijuana company’s chief executive officer(CEO), Brendan Kennedy, said important changes led to an increase in Tilray’s profits.

‘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,’ said Kennedy.

Though Tilray’s revenue grew, the corporation experienced large losses. The company had $31 million in losses, or $0.33 per share. That amount is twice what financial experts expected. The corporation blamed the losses on international expansion costs and operating expenses.

How did Tilray’s Q4 results compare to other marijuana stocks?

Compared to other marijuana companies like Aurora Cannabis. Tilray also had better-than-expected profits. Both Canadian pot companies also had large losses because of operating costs and declines in cannabis-related equities.

What’s next for Tilray’s Q1 profits?

Tilray offered strong guidance for Q1. Kennedy told investors how he expects Tilray’s revenue to increase in the future.

‘Longer term, we continue to expect 50% plus gross margins as we lower our costs through greenhouse and outdoor cultivation, and as we ramp those facilities past the start-up phase,’ said Kennedy.

‘We also expect reduced revenue per unit as selling wholesale and the adult-use market becomes a bigger mix of our revenues,’ added Kennedy.

Tilray benefits from a boom in pot sales

With a surge in marijuana use, Tilray has expanded its reach by partnering with Budweiser to develop cannabis-infused drinks. Kennedy believes that Tilray’s revenue can grow in the long run through strategic alliances.

‘We believe that over the long-term companies such as Tilray with the portfolio of trusted brands powered by multinational supply chain, will win the market by earning the confidence of patients, consumers and governments around the world,’ said Kennedy.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.