Tilray stock is having one of the worst trading sessions in 2019 as Tilray (NASDAQ:TLRY) reported a worse-than-estimated loss for the second quarter.
The marijuana industry has had a tough few months leading up to earnings seasons for the second quarter, and contrary to expectations, many companies have managed to deliver impressive results. The same can be said of Tilray, which released its Q2 2019 financial results today. Like in the case of many other companies, Tilray generated excellent growth as far as revenues were concerned. However, the company’s losses widened further. In Q2 2019, Tilray generated revenues of $45.9 million, which reflects a year-on-year rise that is four times the revenues in the prior-year quarter.
The growth in revenues was driven by a highly impressive rise in cannabis sales. In the second quarter, the company sold 5,588 kilos of the product, while in the prior-year quarter, the total sales in kilo equivalent stood at merely 1,514 kilos. The net losses for Tilray came in at $31.2 million for the quarter, which translated to a per-share loss of $0.32. In the same quarter last year, the losses had come in at $12.8 million, and the loss per share stood at $0.15.
At the time of writing., Tilray stock is down 12.71% at $40.17.
Tilray has been listed on the stock market for more than a year now, but it has still failed to post a profit in any quarter thus far. However, it is important to note that it managed to beat analysts’ estimates both in case of quarterly revenues as well as losses per share. Analysts had estimated revenues of $41.1 million, while the estimated loss per share was $0.25.
The most important reason behind the year-on-year spurt in revenues is due to the fact that Tilray is now involved in both recreational marijuana and edibles at this point. In the same quarter last year, it had not been involved in either of those categories. The recreational revenues came in at $15 million for the quarter.
Tilray stock has lost almost 60% from its February peak price of $100.
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