Can Tilray FQ1 results bring positive surprise amid ~60% stock value wipeout YTD?
RomoloTavani
Tilray (NASDAQ:TLRY) is scheduled to announce FQ1 earnings results on Friday, October 7th, before market open.
The consensus EPS Estimate is -$0.07 (+12.5% Y/Y) and the consensus Revenue Estimate is $156.85M (-6.6% Y/Y).
Over the last 2 years, TLRY has beaten EPS estimates 25% of the time and has beaten revenue estimates 38% of the time.
Over the last 3 months, EPS estimates have seen 1 upward revision and 1 downward. Revenue estimates have seen 1 upward revision and 9 downward.
The Canadian cannabis company's stock rose +7.67% on July 28 following its FQ4 results. Revenue rose +7.8% Y/Y to $153.3M surpassing analysts estimates. However, Tilray incurred a net loss of -$457.8M, compared to net income of $33.6M.
Peer, Aurora Cannabis (ACB) stock fell ~8% on Sept. 21 following its FQ4 results (Sept. 20) but the company's shares saw an upgrade by Canaccord Genuity to Hold from Sell with a lowered price target of C$2 from C$2.50, on potential for growth.
The SA Quant Rating on TLRY is Hold, which takes into account factors such as Momentum, Profitability, and Valuation among others. TLRY has a factor grade of B for Profitability and B+ for Growth. The average Wall Street Analysts' Rating agrees with a Hold rating of its own, wherein 13 out of 20 analysts see the stock as such. YTD, the stock has shed ~60%, see chart here.
In September, the Canadian government started a legislative review of the 2018 Cannabis Act, legislation which legalized marijuana sale in the country, to ensure that the law adapts to the current cannabis control situation. Meanwhile, a new congressional bill in the U.S. aims to allow small-scale marijuana growers to sell products directly to consumers across states when cannabis is federally legalized.
The same month, Tilray received approval in Italy to import and distribute medical cannabis product. In August, the company got approval in Poland to commercialize medical cannabis products.
Tilray also received approval from a non-profit for its flagship product Purified Oral Solution (OS) CBD100 to be used in clinical trials in Australia and New Zealand.
The company also acquired more than $39M debt from a Joint venture partner.
Tilray, however, also faces some challenges, as it was reported in August that the company may face a lawsuit brought by former Aphria shareholders who allege the company of misleading investors about some assets it acquired.