Shares of Tilray (TLRY 1.71%) are down 16.7% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence, after the cannabis products and alcoholic beverage company announced mixed quarterly results relative to analysts' expectations.
Tilray's record quarter just wasn't enough
For its second quarter of fiscal year 2024, which ended Nov. 30, 2023, Tilray's revenue grew 34% year over year to $193.8 million, slightly below Wall Street's estimates for $195 million. On the bottom line, that translated to a non-GAAP (adjusted) net loss of $2.7 million, or roughly breakeven on a per-share basis, which handily beat expectations for a loss of $0.06 per share.
Within its top line, Cannabis revenue grew 35% to $67 million, beverage alcohol revenue climbed 117% to $47 million (helped in part by recent acquisitions), and distribution net revenue rose 12% to $67 million.
Tilray Chairman and CEO Irwin Simon was pleased with the quarter, calling the company "a major force at the forefront of innovation, disrupting the global CPG industry across medical and adult-use cannabis, wellness foods and snacks, and craft beverages."
What's next for Tilray investors?
Looking ahead to the rest of the fiscal year ending May 31, 2024, Tilray also reiterated its outlook for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $68 million to $78 million (up 11% to 27% year over year). Management also continues to expect to achieve positive adjusted free cash flow for the year.
In the end, Tilray's slight revenue shortfall notwithstanding, this was as solid a quarter as any investor could have hoped, given the current uncertain macroeconomic climate. I think long-term investors might do well to consider opening or adding to a position in Tilray at these prices.
