Tilray Stock Drops as Analysts Predict Widening Loss: Earnings Released

Tilray stock

Tilray stock is in the red today as the company prepares to post its fourth-quarter earnings after hours on March 2, with analysts expecting to see a sizeable rise in revenue despite a widening loss.

See Earnings Update

Tilray Inc (NASDAQ:TLRY) is expected to post a loss of $0.35 per share on revenue of US$55.92 million for the fourth quarter of 2019, up from revenue of US$51.1 million in the previous quarter and an increase of over 250% from the same period a year earlier. However, the net loss figure is also expected to grow US$31 million in Q4 2018. When Tilray reported its Q3 earnings results in November, loss per share was also wider than the prior-year quarter; however, revenue more than quadrupled during that time. Tilray stock is currently down 0.8%.

Operationally, it has been somewhat of a mixed quarter for the pot producer. In order to reduce costs and achieve profitability, Tilray trimmed down its workforce by 10% last month as part of a broader effort to generate positive EBITDA by the fourth quarter of this year. The company has been making waves abroad in recent months, including entering into a 2.5-tonne strategic partnership agreement with Canndoc in what is the first-ever deal to ship medical cannabis to Israel.

>> Organigram Stock Makes a Solid Case for Big Gains in 2.0 Market

Tilray stock is currently trading for $14.31.

In January, Tilray announced the appointment of Michael Krutech to the position of Chief Financial Officer, having previously served in multiple financial management roles at Molson Coors (NYSE:TAP) and most recently as the CFO of Pharmaca Integrative. The company also hired former Revlon (NYSE:REV) executive Jon Levin as COO last month.

Last week, Cowen analysts downgraded Tilray stock as the coronavirus outbreak continues to impact the global manufacturing supply chain. The majority of vape products are manufactured in China, where production and distribution in many areas has come to an almost complete halt. Tilray shares have dropped 26% in the past 30 days and 16% so far this year.

Earnings Update

For the fourth-quarter, Tilray posted a loss per share of $0.62, which was considerably worse than the analysts’ expectation of a $0.47 per share loss and well ahead of the $0.28 per share loss reported in the same period a year earlier. Revenue did climb over 200% from Q4 2018 to C$46.94 million, but it still fell well short of the expected figure of C$73.83 million. After seeing out the day over 6% higher, Tilray stock is down nearly 12% after hours.

>> Read More Tilray News

Featured Image: Canva