Back to top

Image: Bigstock

Tilray (TLRY) to Report Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

Tilray, Inc. (TLRY - Free Report) will release financial results for the fourth quarter and fiscal year ended May 31, 2022, before markets open on Jul 28, 2022.

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

Factors at Play

Tilray is a leading global cannabis-lifestyle and consumer packaged goods company.

Revenues increased 23% in the third quarter of fiscal 2022, driven by 32% growth in cannabis revenues, 64% rise in beverage alcohol revenues and wellness revenues. The trend is likely to have continued in the to-be-reported quarter.

On Feb 8, 2022, Tilray Brands launched Tilray Medical, a new comprehensive global division focused on international medical cannabis advocacy and a portfolio of EU GMP-certified medical brands and products.

Tlray had a 10.2% cannabis market share in Canada at the end of the third quarter, driven by its comprehensive portfolio of adult-use brands and growth in pre-roll and vape product categories.

Gross margin increased to 26% from 25% in the prior-year quarter, and the fourth quarter is likely to have seen a rise in margins. Along with the third-quarter earnings release, management stated that cost synergies from the Aphria-Tilray combination of $76 million have been achieved on a run-rate basis to date. Management had also expected to reach $80 million synergy target by May 31, 2022, five months ahead of schedule and generate an additional $20 million in synergies in fiscal 2023.

Please note that in May 2021, the company completed its previously announced business combination with Aphria. Each Aphria shareholder received 0.8381 of a Tilray share for each Aphria common share held on Apr 30, 2021.

Investors will also focus on launches in additional markets.  In April 2022, Tilray Brands announced the launch of Solei Bites, the first THC edible available in Quebec, the second largest market in Canada. In March 2022, Good Supply, Tilray Brands’ best-selling Canadian cannabis brand, announced the launch of Hash Bats, its new fastest-growing infused pre-rolls.

Earnings Whispers

Our proven model does not predict an earnings beat for Tilray in this reporting cycle. 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. That is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Tilray has an Earnings ESP of 0.00%.

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

Share Price Performance

The stock has lost 44% in the year so far compared with the industry’s decline of 22.1%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Here are a few stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Seagen (SGEN - Free Report) has an Earnings ESP of +3.31% and a Zacks Rank #2, currently.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Merck (MRK - Free Report) has an Earnings ESP of +7.18% and a Zacks Rank of 2 at present.

GlaxoSmithKline (GSK - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3 at present.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


GSK PLC Sponsored ADR (GSK) - free report >>

Merck & Co., Inc. (MRK) - free report >>

Seagen Inc. (SGEN) - free report >>

Tilray Brands, Inc. (TLRY) - free report >>

Published in