Tilray (TLRY) is set to release first-quarter fiscal 2022 earnings on October 7.
Tilray is a cannabis-based pharmaceutical company located in Canada. The firm intends to operate in the United States, once the federal government legalizes marijuana.
Over the past year, shares of the company have gained over 126%, trading at $11.10. Strong earnings may boost Tilray stock even more, so let’s see what analysts are forecasting.
Analysts on average expect Tilray to post loss of $0.06 per share and revenues of $178.80 million for fiscal Q1.
Meanwhile, the Earnings Whisper number, or the Street’s unofficial view on earnings, stands at a loss of $0.09 per share.
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Tilray’s Prior Quarter Snapshot
Tilray had a solid fiscal fourth quarter, with both revenues and profitability increasing over the year-ago quarter.
Revenues of $142.2 million increased 25% from the year-ago quarter’s revenue. The revenue reported only represented one month’s performance since the company’s merger with Aphria. Aphria is a producer of safe medical cannabis products.
Segment-wise, Cannabis revenues increased 36% to $53.7 million, with $66.7 million in Distribution, $15.9 million in Alcoholic Beverages, and $5.8 million in Wellness.
Meanwhile, earnings came in at $0.18 per share, up from a loss of $0.39 per share in the year-ago quarter.
Points to Watch
Tilray has a large market share in Canada’s medical and recreational cannabis sectors.
In August, the company bought the majority of the outstanding convertible senior notes of MedMen (MMNFF), an American cannabis MSO. Tilray has a right to a majority interest in the company, upon federal legalization.
During the quarter, Tilray made efforts to expand its product line by introducing new products.
In this regard, the company announced the release of new medicinal cannabis edibles in the form of chocolates and soft chew candies in a variety of flavors in August. Patients in Canada may now purchase these new medicinal cannabis delicacies.
Then, in September, Tilray’s subsidiary, SweetWater Brewing Company added Non-Dairy Almond Milk Stout to its seasonal beer lineup, which was made with plant-based components.
These new innovative products, including real almonds, natural ingredients, whole flowers, oils, and others, should have contributed to the company’s top-line numbers.
In regards to the Aphria purchase, the business stated on its fourth-quarter conference call that the merger with Aphria has resulted in $35 million in cost savings so far, with the company anticipating this to rise to $80 million in the coming months.
Investors must be looking forward to more details on the Aphria deal’s integration and cost synergies, along with the results.
Analysts’ Recommendations
Ahead of the Q1 earnings release, BofA Securities analyst Heather Balsky maintained a Buy rating on the stock but decreased the price target to $17.50 from $21.50. This implies 57.7% upside potential to current levels.
On TipRanks, Tilray stock commands a Moderate Buy consensus rating, based on 3 Buys and 7 Holds.
As for price targets, the average TLRY price target of $16.33 implies 47.1% upside potential from the current levels.
Disclosure: On the date of publication, Shalu Saraf had no position in any of the companies discussed in this article.
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