Tilray Stock Makes Gains Ahead of Q2 Earnings Announcement

Tilray stock

Tilray stock is up 3.6% this morning, August 13, ahead of Tilray's (NASDAQ:TLRY) eagerly awaited Q2 earnings announcement.

Investors appear to be somewhat optimistic ahead of the announcement, especially considering Tilray stock has been underperforming when compared with some of its competitors. Tilray shares have fallen over 40% in 2019 so far, and despite a slumping cannabis market this year, rival companies such as Canopy Growth (TSX:WEED) (NYSE:CGC) and Cronos Group (TSX:CRON) (NASDAQ:CRON) are up over 20% in the year to date.

What Can We Expect from Tilray's Earnings?

In its Q1 earnings, Tilray reported a wide loss due to higher operating costs and expenses. Tilray Inc has made a number of acquisitions recently in an attempt to increase production capacity and drive sales. In February, the company acquired Manitoba Harvest, one of the world’s largest hemp-based natural food producers, which is expected to contribute $20 million CAD to Tilray's quarterly earnings.

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Analysts expect these recent acquisitions to have a huge boost on Tilray's earnings, with year-on-year revenue expected to jump from $9.7 million CAD to $41.1 million CAD, a massive 321.9% increase. The company is expected to report a net loss of 25 cents per share. Investors have clearly greeted these expectations with optimism, as Tilray stock looks like it could be about to recover from its 2019 slump.

Is Tilray Stock About to Recover?

Tilray shares hit an all-time high of $214.06 last September, and despite a few wild fluctuations towards the close of 2018, this year has seen the stock on the slump in a manner largely reflective of the overall industry. Hitting a year high of $100.15 early in January, Tilray stock has failed to come close to this since. According to NASDAQ, judging Tilray shares' performance is quite difficult given the juvenile nature of the cannabis industry, the slower than expected sales for the vast majority of companies, and the series of regulatory scandals that have rocked the market.

However, a year-on-year revenue gain of 321.9% is clearly good news for Tilray stock, and today's movement from investors show that there is reason to be hopeful going forward.

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