Tilray Earnings Mixed In First Results Since Aphria Merger

Canadian cannabis producer Tilray (TLRY) on Wednesday reported better-than-expected fiscal fourth-quarter earnings but sales just missed. Tilray stock rose, while other marijuana stocks were mixed.


The results are the first from Tilray since it merged with rival Aphria in May, a move that fattened the company’s market value but raised questions about its positioning outside Canada.

Tilray Earnings

Estimates: Wall Street expects Tilray to lose 8 cents per share, according to Zacks. Revenue was seen coming in at $142.93 million.

Results: Tilray reported GAAP earnings of 18 cents a share. Revenue rose 25% to $142.2 million. Tilray generated free cash flow of $3.3 million vs. cash burn of $28.3 million a year earlier.

The merger with Aphria brings together Tilray’s medical businesses in Europe and Australia and Aphria’s pharma distribution business, which had driven a majority of Aphria’s sales. It also combines Manitoba Harvest — which makes hemp CBD extracts, hemp granola and other foods — and craft brewer Sweetwater. Those two companies sell products in the U.S.

When the merger deal was announced last year, marijuana stocks analysts said those businesses would do little capture the U.S.’ market for THC products, whenever it might open up to Canadian producers.

Pot Bill Seen As Dud For Marijuana Stocks

Tilray stock rose 4.1% to 13.25 in the stock market today. Shares have a 29 Composite Rating. Their EPS Rating is 30.

Among other Canadian marijuana stocks, Canopy Growth (CGC) edged higher. So did Cronos Group (CRON). Aurora Cannabis (ACB) climbed 2%. Hexo (HEXO) fell 1.2%.

The results from Tilray follow a difficult round of earnings for other U.S.-traded Canadian producers, who have blamed coronavirus retail restrictions in Canada and in Europe for weaker sales. However, Ontario, Canada’s most populous province, has been easing restrictions.

Meanwhile, Sens. Chuck Schumer, Cory Booker and Ron Wyden this month unveiled draft legislation that would federally decriminalize cannabis, while allowing states to set their own policies. The lawmakers will seek public feedback on the bill in the weeks ahead.

But Schumer said the legislation, as it currently stood, didn’t have the necessary votes. Marijuana stocks fell the day the draft bill was announced.

“We believe this legislation is designed to fail,” Cowen analyst Jaret Seiberg said in a note this month.

“It is close to everything that progressives want while providing little reason for Republican senators to back the measure,” he continued. “We see it as a political effort designed to boost Schumer and other Democratic senators in the 2022 primary and general election fights.”


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