What happened?
Shares of Tilray (TLRY +0.00%) are down by 13.1% as of 3:22 p.m. EDT on Tuesday, following the company's release of its second-quarter earnings report after the market closed on Monday. Tilray has made it a habit to disappoint investors with its financial results, and the company's latest quarterly update was yet another example of this trend.
So what
During the second quarter, Tilray reported total revenue of $50.4 million, about 10% higher than the prior-year quarter. On average, analysts expected the cannabis company's revenue to come in at about $55 million. One bright spot in the company's top-line breakdown was its international cannabis segment, whose sales grew by 349% year over year to $8.3 million. However, this segment still accounts for a small percentage of Tilray's total revenue. The company's bottom line was the biggest cause for concern, however.
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Tilray recorded a net loss of $81.7 million -- or $0.65 on a per-share basis -- compared to the net loss of $36.3 million (and the $0.37 net loss per share) it recorded during the second quarter of the previous fiscal year. On average, analysts were expecting Tilray's net loss per share to be $0.20, which means the company fell far short of expectations. Given these less than stellar results, it isn't surprising that investors are selling off shares of this cannabis stock today.
Now what
Tilray's stock has not rebounded nearly as well as the broader market has since mid-March, and the company's stock is still down by 59.6% year to date. Given the precarious state of the economy, the volatile cannabis industry, and the fact that Tilray is still unprofitable, investors may want to steer clear of this company for now.
