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 moved below its 50-day moving average on August 27, 2024 date and that indicates a change from an upward trend to a downward trend. In of 38 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
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