Tilray(TLRY, $21.57) reports wider-than-expected loss for Q3, as selling prices halved
Tilray Inc. shares extended declines in pre-market trading Wednesday, after the company reported a wider-than-expected third quarter loss on sharp decline in Candian pot prices.
For the three months ending in September, the cannabis company’s loss came in at -36 cents per share, 7 cents wider than the Street consensus expectation.
Revenues jumped four-fold from the year-ago quarter to $51.1 million.
However, the average selling prices halved to $3.25 per gram and spending costs climbed nearly four times higher compared to last year – factors that squeezed Tilray’s bottom line.
Looking ahead, Tilray projects inventory levels to begin to decrease in 2020. Inventories have had been rising following Canada's legalization of recreational marijuana use in October of last year. The company also expects positive operating earnings for 2020. It re-affirmed its long-term goals of achieving a "sizeable share" of the global marijuana market, and earning a gross profit margin of around 50%.
CEO Brendan Kennedy said, "We are in the early days of seeing our strategic initiatives bear fruit - including our European expansion, brand portfolio evolution and strategic partnership product launches. We continue to expect significant growth in the fourth quarter and into 2020."
TLRY's RSI Indicator is remaining in oversold zone for 13 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TLRY advanced for three days, in of 209 cases, the price rose further within the following month. The odds of a continued upward trend are .
TLRY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TLRY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for TLRY entered a downward trend on March 14, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.545) is normal, around the industry mean (60.305). P/E Ratio (8.518) is within average values for comparable stocks, (90.174). TLRY's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.987). Dividend Yield (0.000) settles around the average of (0.122) among similar stocks. P/S Ratio (2.355) is also within normal values, averaging (20.030).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. TLRY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TLRY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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General Information
a holding company, whose subsidiaries engages in research, cultivation, processing and distribution of medical cannabis
Industry PharmaceuticalsOther