Cannabis company Tilray Brands (NASDAQ: TLRY) will be reporting results tomorrow morning. Here’s what to expect.
Tilray missed analysts’ revenue expectations by 9.4% last quarter, reporting revenues of $200 million, up 13.1% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
Is Tilray a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Tilray’s revenue to grow 11.6% year on year to $216.3 million, slowing from the 34.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tilray has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Tilray’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. General Mills delivered year-on-year revenue growth of 2%, beating analysts’ expectations by 1.9%, and Simply Good Foods reported revenues up 10.6%, falling short of estimates by 1.7%. General Mills traded down 2.9% following the results.
Read our full analysis of General Mills’s results here and Simply Good Foods’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the consumer staples stocks have shown solid performance, the group has generally underpeformed, with share prices down 7.3% on average over the last month. Tilray is up 10.3% during the same time and is heading into earnings with an average analyst price target of $2.18 (compared to the current share price of $1.39).
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