Tilray Brands Inc (TLRY)

[FUNMAN]

Tilray (TLRY) to Report Q1 Earnings: What's in the Cards?

Zacks Equity Research

Mon, May 3, 2021, 12:02 PM
4 min read

https://finance.yahoo.com/news/tilray-tlry-report-q1-earnings-160204100.html

Tilray, Inc. is estimated to report earnings on 05/10/2021. The upcoming earnings date is derived from an algorithm based on a company's historical reporting dates.

The focus will be primarily on revenue growth amid the pandemic for Tilray, Inc. TLRY when it reports first-quarter results.

In the last reported quarter, the company beat earnings expectations by 42.86%. The company has a decent track record. Tilray missed earnings estimates in two of the last four quarters and beat in the remaining two, the average negative surprise being 1.66%.

Let us see how things have shaped up prior to this announcement.

Why a Likely Positive Surprise

Our proven model predicts an earnings beat for Tilray this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Earnings ESP for Tilray is +11.48%.

Zacks Rank: It currently carries a Zacks Rank #3.

Factors at Play

Tilray is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids.

Revenues grew 20.5% year over year in the last reported quarter to $56.6 million, driven by revenue growth across core businesses, and similar levels of growth have most likely prevailed in the quarter under review. Cannabis segment revenues increased 46%, driven by the acceleration of International Medical sales (+191%) and Canadian Adult-Use sales (+49%). Canadian medical sales grew 26%. Similar trends have likely prevailed in the first quarter.

However, Hemp segment revenue ads decreased 18% year over year due to a shift to private-label products with a large customer and the impact of COVID-related changes on consumers’ shopping patterns, a trend that has most likely continued in the to-be-reported quarter.

Total cannabis kilogram equivalents sold decreased 54%, almost entirely due to the reduction of bulk sales, and the first quarter has most likely witnessed the same.

Gross margin increased to 29% from 7% in the previous quarter and the same might have been the trend in the to-be-reported quarter.

A Key Recent Development

Tilray completed its previously announced merger with Aphria Inc. The combined company is one of the leading cannabis-focused consumer packaged goods companies with the largest global geographic footprint in the industry. Each Aphria shareholder received 0.8381 of a Tilray Share for each Aphria common share held on Apr 30, 2021. The operational efficiencies from this combination are expected to generate approximately $81 million of annual pre-tax cost-saving synergies for the company within eighteen months.

Share Price Performance

Tilray’s stock has rallied 111.6% in the year so far against the industry’s decline of 8.4%.