Canadian cannabis and consumer packaged goods company Tilray (TLRY -0.57%) reported its third-quarter fiscal 2022 results this morning for the three months ended Feb. 28, and the market liked it. Tilray shares shot up almost 16% in early trading, and remained 12.5% higher as of 11:18 a.m. ET.
Analysts surveyed by FactSet had expected the company to report a loss of $0.08 per share. But Tilray announced a surprise profit of $0.09 per share with its revenue growing 23% compared to the year-ago period. Cannabis revenue increased 32% and beverage alcohol revenue jumped 64% year over year. Distribution revenue, however, dropped 11% compared to the 2021 quarter. Overall revenue of $152 million slightly missed the level that analysts anticipated.
In addition to reporting a strong bottom line, Tilray announced a new partnership with Whole Foods Market. Tilray subsidiary Manitoba Harvest already sells hemp food and wellness products in the U.S. More than 300 Whole Foods Market stores throughout the U.S. and Canada will now carry Manitoba's Hemp+ Matcha and Hemp+ Supergreens powders beginning this month. The company touts the product as being a healthy addition to smoothies or oatmeal for the health-conscious consumer.
Manitoba Harvest is part of Tilray's group of U.S. businesses that also includes craft brewer SweetWater Brewing and Breckenridge Distillery. Tilray hopes these business will provide a foundation and infrastructure for future cannabis business, should marijuana be legalized federally in the United States.
But those businesses are also standing up on their own. Tilray said all three of the U.S. businesses were profitable. CEO Irwin Simon summed up the quarterly results, stating, "Our third quarter results reflect progress and momentum across all of our key business segments and geographies, setting the stage to achieve our target for $4B in revenue by the end of fiscal 2024."
Investors are giving the company a thumbs-up on that progress by boosting Tilray shares today.