Tilray: What to Expect from Its Q4 Earnings Next Week



Tilray to report earnings

Tilray (TLRY) is scheduled to report its fourth-quarter earnings on March 18 after the market closes. So far, the company has had a weak performance this year compared to its peers. Tilray has returned ~2% YTD (year-to-date) compared to its peers (HMMJ). Aphria (APHA) has risen 56%. Aurora Cannabis (ACB) has returned ~50%, while and Cronos Group (CRON) has returned nearly 85% YTD.

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Sales estimates

Analysts expect Tilray’s sales to grow ~26% sequentially to $12.6 million in the fourth quarter from $10 million. The company reported sequential growth of ~3% in the previous quarter.

 Tilray’s sales growth is expected to come from recreational cannabis—similar to what we saw for Canopy Growth (WEED), Aphria, and other cannabis companies that reported their earnings last month.
Aphria reported its earnings last month. The company stated that recreational cannabis sales boosted its revenues in the second quarter. Aphria’s net sales rose 154% year-over-year to 21.7 million Canadian dollars from 8.5 million Canadian dollars. To learn more, read Key Takeaways from Aphria’s Second-Quarter Earnings.
Tilray has been trading at a significant premium to its peers. Read TLRY Is Too Rich for Jefferies—What about Other Cannabis Players? to learn more.
Next, we’ll discuss analysts’ estimates for Tilray’s margins.

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