Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Tilray Sales Blast Higher in Mixed Q3

By Eric Volkman - Nov 12, 2019 at 7:27PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's revenue beats expectations, but its net loss is deeper than analysts anticipated.

Tilray ( TLRY ) released its Q3 of fiscal 2019 results after market close on Tuesday. In contrast to fellow marijuana stock Aleafia Health ( ALEAF 3.62% ), which reported its own Q3 figures that morning, Tilray's stock price did not move violently on the news.

In its Q3, Tilray's revenue amounted to just over $51 million. That was up by 11% from the Q2 tally, and represented a nearly 410% improvement on a year-over-year basis. On the bottom line, net loss deepened slightly to $35.7 million ($0.36 per share). Tilray's Q2 net loss was $35.1 million, while Q3 2018's deficit was $18.7 million.

Marijuana leaf atop a one-dollar bill.

Image source: Getty Images.

That most recent top-line figure beat the average analyst estimate of $49 million. However, those prognosticators were collectively expecting a per-share net loss of only $0.30. 

In terms of volume, Tilray sold 10,848 kilos of product in Q3. This was a dramatic improvement over both the 1,613 kilos in the year-ago quarter and the 5,588 kilos sold in Q2. Meanwhile, the average net selling price fell to $3.25 per gram; this figure was $6.21 a year ago and $4.61 in the previous quarter.

Tilray attributed the declines to "a shift in product and channel mix."

The revenue growth was due to several factors. One was the development of the Canadian recreational-use market, which was legalized just over a year ago.

Another was Tilray's absorption of hemp products producer Manitoba Harvest; that acquisition closed earlier this year. In Q3, Tilray booked almost $15.7 million in hemp sales, a category that was nonexistent for it one year ago.

Tilray also saw a steep increase in revenue outside of North America. Its sales of international medical cannabis offerings saw a nearly sixfold year-over-year increase, to $5.7 million. Although marijuana legalization is moving slowly in many markets abroad, certain nations have liberalized aspects of their laws -- notably with medical cannabis.

As of this writing, Tilray's stock was down by slightly more than 2% in after-hours trading. This relatively modest drop could provide some relief to marijuana stock investors following Aleafia's stock performance. During Tuesday's normal trading hours, Aleafia shares suffered a nearly 11% drop. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tilray Stock Quote
Tilray
TLRY
Aleafia Health Inc. Stock Quote
Aleafia Health Inc.
ALEAF
$0.12 (3.62%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
635%
 
S&P 500 Returns
141%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/02/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.