Tilray announces earnings
Tilray (TLRY) announced its second-quarter earnings on August 28 after the market closed. The company reported sales of $9.7 million, a 95% rise year-over-year from $4.9 million. However, the company reported a loss per share of $0.17, which was worse than its loss per share of $0.01 in the second quarter of 2017.
Stocks pops after hours
The stock popped almost 13.6% to $58.5 in the after-hours trading session on August 28. Canopy Growth (WEED) (CGC) also gained almost 6.7% in the after-hours trading session on Tilray’s better-than-expected earnings. Cronos Group (CRON), which is also listed on the US stock exchange like Canopy Growth and Tilray, rose 10.6% in the after-hours trading session.
Tilray has a presence in over 11 countries and in its press release, the company guided for stronger sales in the international market in the second half of the year, fueling the optimism in the sector (HMMJ). In addition, in the domestic market, the company has supply agreements with seven provinces in Canada.
Cannabis stocks continue to enjoy a rally after the announcement of an investment of $4 billion from Constellation Brands in Canopy Growth. In addition, in a policy reversal, the province of Ontario has now said it will allow private retailers to set up shop in the province. This move could give an opportunity to cannabis companies to capture higher margins in the most populated province in Canada. We’ll follow up this article with a more detailed analysis of Tilray’s earnings.