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Tilray Reports Losses, but Stock Popped 4% after Earnings

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Tilray’s bottom line

On May 14, Tilray (TLRY) reported a Q1 2019 loss per share of $0.32, which missed the estimate of a $0.24 loss per share. Tilray reported a loss per share of $0.32 in the previous quarter and a loss per share of $0.07 in the first quarter of 2018. Since most cannabis companies are in their expansion stage, the earnings are expected to be highly volatile. For example, Aurora Cannabis (ACB) reported a loss per share of $0.16.

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Outlook and updates

Tilray is conducting research in Melbourne with a pilot study on “the feasibility and acceptability of a larger randomized placebo-controlled trial of cannabis extract as a form of treatment for reducing Severe Behavioral Problems (or SBP) in pediatric patients with Intellectual Disabilities (or ID)” and a study “to examine the effectiveness of medical cannabis on immune activation in People Living with HIV.” This effort shows that the company is aiming to make a strong foray into the medical segment with solutions that are grounded in science.

Medical cannabis has been an avenue that peers are also pursuing. Canopy Growth (WEED) and Aurora Cannabis (ACB) have also taken initiatives to develop products to penetrate the medical market. Canopy Growth closed 3.5% higher, while the Horizons Marijuana Life Sciences ETF (HMMJ) gained 3.2%. Tilray gained 4% after the market close.

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