Tilray Inc. experienced a loss for the fourth quarter, but had blockbuster growth in sales - thanks to a burgeoning medical marijuana market.
The Canadian pharmaceutical and marijuana company incurred a net loss of -33 cents per share for the three months ending in December, compared to a 4 cents per share profit from the same period in 2017. The company’s revenue, however, tripled to $15.5 million – beating analysts’ estimates of $14.1 million. According to Tilray, the number of kilograms of cannabis and derivative products increased nearly three-fold to 2,053, from 694 kilograms of the year-ago quarter.
Sales for the full-year 2018 surged +110% to $43.1 million.
Tilray felt a downward pressure on its fourth quarter gross margins, which at 20% were nearly a third the rate of the previous period. CEO Brendan Kennedy attributed this to increased procurement costs and taxes for medical patients, while also portending a potential future temporary headwind to margins from the company’s overseas expansion plans. But Kennedy seemed more optimistic on the long-term prospects. "Longer term, we continue to expect 50% plus gross margins as we lower our costs through greenhouse and outdoor cultivation, and as we ramp those facilities past the start-up phase," Kennedy said.
The fourth quarter saw Tilray make some major headway in business partnerships and expansion goals. The company expanded its collaboration with Sandoz (a division of Swiss drug maker Novartis) to widen the reach of medical cannabis to patients globally. Tilray also revealed plans of a research and development partnership with AB InBev, on non-alcohol THC and CBD-infused beverages – a project for which the two firms might invest up to $50 million each.
The 10-day RSI Indicator for TLRY moved out of overbought territory on July 17, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 20 instances where the indicator moved out of the overbought zone. In of the 20 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a holding company, whose subsidiaries engages in research, cultivation, processing and distribution of medical cannabis
Industry PharmaceuticalsOther