Shares of Canadian marijuana company Tilray (NASDAQ:TLRY) soared in early trading Wednesday after it reported earnings for its fiscal 2021 fourth quarter, which ended May 31. As of 11:15 a.m. EDT, shares were 22% above Tuesday's closing price. The report was the first provided to investors since Tilray merged with rival Aphria.
The big news from its fiscal fourth-quarter earnings release was just that -- earnings. Tilray said it had net income of $33.6 million, compared to a loss of $84.3 million in the year-ago period. It also said it produced $3.3 million in positive free cash flow. According to FactSet, analysts had predicted a net loss of $0.12 per share, and the stock's move higher reflects how much investors' appreciate the $0.18 per share profit that was reported instead.
Tilray said its cannabis revenue grew 55% in its fiscal fourth quarter, and it's the largest cannabis seller in Canada. Further, it has gained market share sequentially each month since April 2021.
"Early results from the new Tilray affirm that, while the global cannabis market remains in its early stages, our vision, scale, access to resources and operational excellence position us optimally to capitalize on the opportunity," CEO Irwin Simon said in a statement.
Tilray is also expanding its craft brewing business in the U.S. and has shipped its first medical cannabis grown in Germany for that local market. Its SweetWater Brewing subsidiary has announced an expansion to the U.S. West Coast with a new brewery to be built in Colorado.
Investors appear happy with the company's progress, even while its cannabis business is restricted to Canada and Europe at this point. Any progress toward federal cannabis legalization in the U.S. will likely give the stock another boost. But Tilray looks to be performing well right now even without that.