Tilray (TLRY) Earnings Prep: Q3 Report Expected Tuesday

in EARNINGS/INVESTING IDEAS by

Tilray, Inc. is a mid-cap stock with a market capitalization of $2.160 billion and a total enterprise value of $2.347 billion. The company operates in the Healthcare sector and Pharmaceuticals industry.

Tilray, Inc. (NASDAQGS:TLRY) is scheduled to report Q3 earnings results after market close on November 12, 2019. The company is expected to report earnings of -$0.31/share on revenue of $49.432 million. The consensus earnings per share (EPS) of -$0.31/share is based on a poll of 9 analysts and represents a growth of 55.0% of over the same quarter last year when the company reported earnings of -$0.20/share.

The revenue forecast of $49.432 million based on a poll of 15 analysts implies a year-over-year (YoY) growth of 392.0%. Last year the company reported $10.047 million in revenue for the quarter.

Expected to report EPS of -$0.31/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $49.43 $10.05 392.0%
EPS -$0.31 -$0.20 NM

Earnings Call Trends

Management’s track record for providing useful guidance is absolutely dismal historically and there is no good reason to believe things will be any different this quarter. The company has missed earnings expectations every quarter for the last 5 quarters tracked.

What are your expectations from Tilray for this earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2019 -$0.30 -$0.32 NM Missed
Q1, 2019 -$0.25 -$0.27 NM Missed
Q4, 2018 -$0.14 -$0.33 NM Missed
Q3, 2018 -$0.13 -$0.20 NM Missed
Q2, 2018 -$0.09 -$0.14 NM Missed

After the last earnings report for the period ending June 30, 2019, the stock price reacted by falling by -8.1%.

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Before” column shows the closing stock price on the day before the earnings report, and the “Price After” column shows the stock price at the end of the trading day after the earnings report. Stock Price Performance After Earnings

Report Date Price Day Prior Price Next Day Change % Result
2019-08-13 $42.46 $39.04 -8.1% Decline
2019-05-14 $46.47 $48.90 5.2% Increase
2019-03-18 $72.50 $69.79 -3.7% Decline
2018-11-13 $113.44 $102.34 -9.8% Decline

Fundamentals And Technical Analysis

Tilray is currently trading at $21.92/share, down -6.4% for the day. The company is trading at approximately 15.3% of its 52 week high of $142.84/share. The company’s stock price is down -48.4% since the last earnings report and up 8.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 49.34 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of -20.1x and a forward P/E multiple of -19.2x.

Tilray’s current share price also implies a price-to-book (P/B) multiple of 6.4x. The following table summarizes some other key fundamental ratios:

Data as of November 11, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 30, 2019
Stock Price (Current) $21.92
P/E Ratio -20.1x
P/E Ratio (Fwd) -19.2x
PEG Ratio 0.6
Total Debt to Capital (%) 15.8%
Levered Free Cash Flow -$201.8 million
Enterprise Value / EBITDA -28.9x

Company Profile: Tilray, Inc.

Tilray, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products to patients, physicians, pharmacies, governments, and hospitals; and for researchers for commercial purposes, and compassionate access and clinical research applications. It operates in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, the United Kingdom, the United States, and South Africa. The company was incorporated in 2018 and is headquartered in Nanaimo, Canada.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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