TLRY Stock in the Green After Q1 Revenue Report Release

TLRY Stock

TLRY Stock investors are having a good day as Tilray Inc (NASDAQ:TLRY) stock is in the green while the entire cannabis sector is in deep red. Investors are reacting positively following the company's solid revenue growth in the first quarter.

Strong Revenue Boosts TLRY Investor Confidence

The gain in the TLRY stock is attributed to the Q1 results. The company posted $23 million US in revenue, which is an almost 200% increase from Q1 2018, easily beating analyst estimates of around $21.4 million US. However, Tilray's revenue also comprised of excise taxes which when adjusted will bring the revenue to around $21.5 million. The net loss for the quarter was $30.3 million or $0.32 per share; analyst projections were $0.23 per share. The same period last year saw losses of $5.2 million US.

The tremendous revenue growth in Q1 is attributed to a number of things.

Adult-use Recreational Marijuana 

Tilray benefited from the legalization of adult-use recreational marijuana in Canada in the last quarter. In Q1, adult-use recreational marijuana sales generated around $7.9 million and considering the market opened in October last year there was no revenue from this market in previous quarters. This was the first full quarter that the company had sales in adult-use recreational marijuana. TLRY stock investors must be feeling justified after solid revenue from adult-use recreational marijuana.

Tilray Acquisition of Manitoba Harvest 

The acquisition of Manitoba Harvest in February was also another growth driver for the company. Food product sales in Q1 were $5.6 million, and it all came from Manitoba Harvest's product lineup. Manitoba Harvest offers its hemp-based products in over 16,000 outlets across the US.

Tilray's Growing International Operations 

In its international operations, the company had solid results with medical cannabis sales from international markets in Q1 2019 being $8.1 million which is a year-over-year growth of 321%. Tilray did not provide results for international sales in Q4 although they indicated that they spent much in terms of international expansion.

TLRY stock is up 2.50%, selling at $49.15 in this morning's session.

Tilray Stock is one of the more popular cannabis stocks with investors despite the exceptional volatility since August. However, the stock has corrected almost 85% from its intro-day peak price of $300.

How do you feel about TLRY stock after the earnings?

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