Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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 spread betting and CFDs.

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