Shares of Tilray Inc. (TLRY) - Get Report fell 2.8% in morning trading on Wednesday, Nov. 14, after the Canadian cannabis products producer reported revenue that came in slightly below analyst expectations for the third quarter.
Tilray reported a net loss of 8 cents per share on revenue that increased almost 86% to $10 million.
Analysts were expecting the company to report a net loss of 12 cents per share on revenue of $10.12 million. In the previous quarter, Tilray reported a net loss of 17 cents per share on revenue of $9.74 million.
"The cannabis industry remains very robust and we are pleased with our revenue momentum and strategic achievements in the third quarter," said Brendan Kennedy, President and Chief Executive Officer of Tilray. "We are in the early stages of achieving our growth potential and our team continues to strategically execute on disciplined operational initiatives and investments to support Tilray's long-term, sustainable growth as the pace of legalization continues to accelerate around the world."
Tilray is under a lot of scrutiny as Wall Street grapples with whether the company's current $10 billion valuation is justified with 2019 revenue expected to top out at $140 million.
Tilray more than doubled the amount of cannabis it sold year over year in the quarter to 1,613 kilograms from 684 kilograms a year ago. The average selling price per gram fell, to $6.21 from $7.53 a year ago, as the company sold more weed in bulk than it did a year ago.
Tilray has been one of Wall Street's hottest cannabis stocks, jumping nearly 400% since its debut in July.