Tilray, the Canadian cannabis company, reports second-quarter earnings Tuesday.
Shares rose ahead of the earnings release.
Tilray’s stock has tumbled nearly 80% from the all-time highs it reached in September 2018.
Watch Tilray trade live on Markets Insider.
Shares of Tilray surged more than 8% Tuesday before the company reported its second-quarter earnings, which were slated to be released after the close of trading.
Here’s what analysts surveyed by Bloomberg expect the Canadian cannabis company to report:
Adjusted loss per share: $0.26 expected
Revenue: $40.34 million expected
While it was the first cannabis company to go public in the US, its share price has slipped from a high of more than $200 last September to where it currently trades around $45.
In March, shares rose after the company reported first-quarter earnings that exceeded sales expectations but missed on the bottom line.
Analysts are wary of the company partly because it has broadened its focus from Canada to international markets — a move that industry watchers have called risky.
“Tilray is NOT a story of growth in Canada or with production that really matters overall,” wrote Tim Seymour, portfolio manager of the Amplify Seymour Cannabis ETF. “They are lagging the big LPs in Canada” including Canopy Growth, Aphria, Aurora and Organigram.
Other analysts agree. The Canadian adult-use market provides some opportunity for Tilray, wrote W. Andrew Carter of Stifel in a note Tuesday. However, the company “faces a later start to the Canadian second wave and still faces a lack of regulatory clarity from the FDA around CBD,” Carter added.
This could keep the company from launching its US CBD products during 2019, Carter wrote.
In February, Tilray purchased Manitoba Harvest, the world’s largest hemp-food company, for $318 million. Hemp is largely used because it contains cannabidiol or …read more
Source:: Business Insider