Shares of cannabis products provider Tilray Brands (NASDAQ:TLRY) are tanking today after the company’s dismal second-quarter showing.
During the quarter, TLRY’s top line dropped 7.1% year-over-year to $144.1 million, missing estimates by $13.1 million. Net loss per share at $0.06 came in line with estimates.
The company now has an 8.3% share of the Canadian cannabis market. It witnessed a 56% increase in Beverage-alcohol sales and a 22% jump in gross profit during this period.
Additionally, TLRY’s cannabis gross margin expanded to 37% from 23% a year ago. The company is also aiming to notch $130 million in annualized cost savings by driving efficiencies.
Owing to the big top-line miss, shares of the company are down about 9% today and have dropped nearly 54% over the past year. At the same time, short interest in the stock remains high at around 7.5%.
Analysts, in the meantime, have a Hold consensus rating on TLRY alongside an average price target of $4.42. This still points to a 66.1% potential upside in the stock.
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