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A worker holds a tray with cannabis cuttings at the Tilray European medical cannabis production site in Cantanhede, Portugal, in 2018.
AFP / Getty Images
Tilray Inc. saw very little growth in revenue from cannabis sales in a Monday earnings report, but cut losses and promised adjusted fourth-quarter profitability, pushing shares up late after trading. a staggering increase in pot stocks on the heels of US Election.
Tilray TLRY,
reported a third-quarter loss of $ 2.3 million, or 2 cents per share, an improvement from a loss of 36 cents per share in the same period a year ago. The cannabis company’s revenue was $ 51.4 million, up very slightly from $ 51.1 million a year ago; after removing excise taxes, as most other cannabis companies do when reporting income, sales totaled $ 47.2 million. Analysts on average expected losses of 21 cents per share on sales of $ 54.4 million.
Tilray said the stagnant total revenue was the result of bulk cannabis sales in the third quarter of last year that did not repeat in 2020. Chief Executive Brendan Kennedy said the rest of the business of the company was growing as it cut costs, leading to lower costs. losses.
“We achieved strong year-over-year revenue growth in our core businesses and achieved a significantly more focused, efficient and competitive cost structure, which positions Tilray for future success,” Kennedy said in Monday’s announcement.
After nearly breaking even in the third quarter on an Adjusted EBITDA basis – a loss of $ 1.5 million – Tilray said it would break through with adjusted fourth quarter earnings.
“Based on the overall improvements we have made in the third quarter of 2020, we believe we are poised to deliver positive Adjusted EBITDA or breakeven in the fourth quarter of 2020,” the company said in its outlook, which did not provide specific objectives. for income or other measures.
Cannabis stocks were torn apart last week, as four US states approved the legalization of recreational cannabis sales in votes last week and it emerged Joe Biden would win the presidency. Biden has been more vocal than outgoing President Donald Trump on taking action to decriminalize cannabis in the United States, as in Canada.
Tilray followed two other major Canadian cannabis companies in reporting profits Monday morning. Canopy Growth Corp. CGC,
CANNABIS,
showed a significant revenue gain over last year, and Aurora Cannabis Inc. ACB,
ACB,
sales declined but exceeded analysts’ expectations.
Read more: Cannabis stocks rally again as Canopy and Aurora report results
Tilray shares initially gained more than 7% after-hours trading Monday after the results were announced, but those increases calmed to closer to 2% later in the session. The stock is down 41% this year as the S&P 500 SPX index,
gained 8.6%, but stocks have risen more than 68% in the past three regular trading sessions.
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