Investors who have ridden the surge after the initial public offering of cannabis player Tilray Inc. (TLRY) - Get Report have some things to consider following its first earnings report as a public company.
Namely, can one stomach the profit risk from a high-growth cannabis company like Tilray? On Tuesday, Aug. 28, the company reported that second-quarter sales surged 95.2% from the prior year to $9.7 million. Analysts were looking for sales of $9 million. Sales were fueled by patient demand in Canada, sales to other licensed producers and growth overseas. Total kilogram equivalents sold and average selling prices rose 97% and 2.9%, respectively.
Tilray's loss per share came in at 17 cents, wider than a loss of 1 cent last year. Analysts anticipated a loss of 9 cents a share. The net loss included non-cash compensation charges of $5.6 million. Tilray didn't issue an adjusted per share figure.
"We are very pleased with our strong start to 2018. Tilray is well-positioned to continue to pioneer the development of the global medical cannabis market and to become a leader in the adult-use cannabis market in Canada," said Tilray CEO Brendan Kennedy.
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