This week is going to be a big one for the cannabis industry as many titans in the market are reporting their Q1 financial figures. While some, such as Aurora Cannabis (TSE: ACB)(NYSE: ACB) has been somewhat of a disappointment, others were a pleasant surprise. Tilray Inc (NASDAQ: TLRY) was one of those companies that many didn’t expect to see excellent results from, but the company impressed the market with a 195 percent spike in revenue.
In comparison to the same time last year, Q1 2019 saw Tilray’s sales almost triple, driven mainly by the legalization of Canadian recreational cannabis use in 2018. Additionally, total kilograms sold increased from 1,299 to 3,012, while average net selling price per gram went down from $5.94 to $5.60. Analysts had originally expected the company to report negative $0.24 adjusted losses per share, while it turned out that Tilray had positive earnings per share of $0.27. Total revenues were at $23 million, ahead of the $21.4 expected by Wall Street. With the company boasting positive figures all across the board, Tilray managed to beat expectations when many of it’s larger rivals have fallen short of the mark.
“We are pleased with our first quarter results and the ongoing, substantial progress our team has made to position Tilray as a global leader in the cannabis industry,” said Brendan Kennedy, Tilray President and CEO. “We have made significant progress integrating our recent acquisitions of Manitoba Harvest and Natura Naturals, accelerating our entry into the United States hemp and CBD markets, and increasing our production and manufacturing capacity in North America and Europe. As we expand our operations around the world, we remain focused on making disciplined investments to maximize the multiple paths to value creation we are aggressively pursuing for our visionary investors.”
Overall, Tilray’s financial picture seems to be brightening for the upcoming quarters as analysts expect losses to decrease now that the company has surpassed expectations. Historically, Tilray has been considered one of the more overvalued cannabis companies on the market today alongside Cronos Group (NASDAQ: CRON)(TSE: CRON), whose shares have fallen a bit over the past month. Despite this quarter’s impressive performance, however, Wall Street remains mainly neutral on Tilray, with six analysts who were polled by Bloomberg saying they had a “hold” rating, while three had a “sell” and another three had a “buy.”
In response to the news, shares of Tilray increased around 4.9 percent on Tuesday, an impressive increase for a company that previously was considered overvalued. To top it off, this gain increased during after-hours trading as shares picked up another 4 percent, as of Tuesday night are sitting around $51 per share, making it one of the best days for the stock in a while.
Tilray Company Profile
Tilray Inc is engaged in the sale and development of medical cannabis. Geographically, the company derives the majority of its revenue from Canada. The product categories of the company include dried cannabis which includes whole flower and ground flower, and cannabis extract which include full spectrum and purified oil drops and capsules. – Warrior Trading News
