Tilray stock is under pressure in Wednesday's trading session after Tilray Inc (NASDAQ:TLRY) reported mixed earnings for the third quarter.
The past few days have proven to be a hectic time for the cannabis industry as more and more companies declared their financial results for their most recent quarters. On Tuesday, Tilray announced its financial results for the third quarter following the closure of markets.
Revenue Tops Estimates
In its third quarter, the company generated revenue of a little more than $51 million, which reflected a sequential rise of 11% from the Q2 2019 revenue. Analysts had expected revenue of $49 million for the period.
However, on a year-on-year basis, the revenue rose by as much as 410% and represents considerable growth for Tilray Inc. That being said, the company’s losses widened marginally from the previous quarter to hit $35.07 million, which works out to $0.36 a share, and that is something Tilray stock investors must be watching closely.
The losses fell short of analysts’ expectations of $0.30 loss per share. In the previous quarter, Tilray suffered a loss of $35.1 million. In the same quarter in 2018, Tilray suffered losses amounting to $18.7 million.
Tilray stock is trading lower by 3% at $21.132.
A significant improvement was seen in the company’s sales volumes in the quarter. Tilray sold 10,848 kilos of cannabis in the quarter, which represents a significant rise from the 1,613 kilos it sold in Q2 2019. That being said, the net selling price in Q3 slumped to only $3.25 per gram as opposed to $4.61 in Q2. The rise in revenue is primarily attributed to the legalization of recreational cannabis in Canada and Tilray’s acquisition of Manitoba Harvest, a producer of hemp products. During the quarter, the company also managed to perform significantly better in the international markets, and its revenue rose as much as six times year-on-year to hit $5.7 million.
Tilray stock has slumped almost 80% from its peak price of 2019.
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