- Tilray, the second-largest publicly traded marijuana company, posted quarterly earnings that topped expectations on Tuesday.
- The stock was up more than 18% following the news, with other marijuana companies also rising.
- Marijuana stocks have seen an impressive rally in recent months thanks to investments from major beverage companies.
- Follow Tilray’s stock price in real-time here.
After a brief selloff earlier in the week, shares of Tilray – the second-largest publicly traded marijuana stock – were up more than 17% Wednesday after the Canadian company posted quarterly sales nearly double a year ago.
For the second quarter, Tilray reported revenue of $9.7 million – topping an the $9.02 million was expected and up from $4.9 million a year ago. The company’s bottom line was also better-than-expected, coming in at an adjusted loss of $0.17 per share where Wall Street analysts had expected $0.85.
Prices per gram of cannabis roset 3% from to $6.38. The company’s chief executive told analysts on a conference call that this uptick was thanks to higher potency weed, but that it was also hampered by some wholesale deals.
“The drivers of the pricing improvement is really based on mix,” Mark Castaneda, Tilray’s chief financial officer, said on the call. “We sold some higher-potency flower, which was a higher percentage of the mix. We also sold some wholesale flower, which actually brought pricing down, and also extracts was a higher percentage in the mix as well.”
Tilray is now valued at $4.9 billion, despite its losses, and could keep growing thanks to investments from major players in other sectors, especially alcoholic beverages. Constellation Brands – which makes Corona and Modelo, among other popular drinks – catalyzed a huge rally in Canopy Growth’s stock through the announcement of two recent investments.
“We expect more alcoholic beverage companies to announce deals with Canadian LPs over the course of the year, and view Tilray as an attractive partner for an alcohol company looking for exposure to cannabis,” Vivien Azer, an analyst at Cowen, said in a note to clients on Wednesday.
Shares of Tilray are up 164% since the company’s IPO in July.
- Markets Insider