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Canadian marijuana producer Tilray reported mixed second-quarterearnings aftet the close Tuesday. Revenue beat expectations but losses were larger than expected with huigher costs and lower average selling prices. $TLRY slid over 5% on the report.

Marijuana Bud Tilray

Tilray Inc NASDAQ: TLRY  Reported Earnings After Close Tuesday

($0.32) Missed Exp ($0.23) EPS and $45.9 Beat $40 million forecast in revenue

Earnings

Tilray's Q2 revenue was $45.9 million, roughly double that of the prior quarter  and ahead of' expectations of $40 million. Tilray sold 5,588 kilograms of cannabis during the quarter, up 85% from the prior quarter.

However Tilray's per-share loss, of 32 cents per share, was worse than expectations for 23 cents. Costs related to international expansion, interest from convertible debt and the Manitoba acquisition kept the company in the red. The average selling price was down almost a third on the year.

Aquisitions

Revenue increased Tilray's acquisition of Manitoba Harvest, which Tilray has described as a large hemp food company. Sales from food products accounted for $19.9 million of the company's total sales.

Tilray Inc NASDAQ: TLRY

Market Reaction > After hours $43.45 −2.57 (-5.58%)

Highlights

  • Revenue from Food Products segment grew to $19.9 million, representing almost 43% of total revenues. (However, the Federal Drug Administration recently questioned the authenticity and safety aspects of such products, besides initiating the first hearing on it two weeks ago)
  • Recreational sales came in at around $15 million, nearly double that of the previous quarter.
  • Tilray sold 5,588 kilograms of cannabis during the quarter, up 85% from the prior quarter.
  • Recreational sales in Canada went legal in October.
  • Average net selling price per gram decreased to $4.61 from $6.38 a year ago.
  • Gross margin rose to 27% from 23% in the first quarter.
  • Between the fourth quarter of last year and this year's first quarter, Tilray shipped 4.9% of Canada's recreational weed to the nation's provinces, according to Stifel.
  • That amount is far behind leaders Canopy Growth, which shipped around a third, and Aurora Cannabis, which shipped 17%

Tilray Financial Summary 2Q19

Source: Tilray, AlphaStreet

From The Traders Community Research Desk

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