Tilray Brands shares spiked Wednesday after the Canadian cannabis producer reported a narrower loss for its fiscal fourth quarter than a yr ago and a solid revenue beat.
The stock closed nearly 15% higher Wednesday.
While a Canadian company, Tilray has been positioning itself to be a frontrunner within the U.S. adult-use cannabis market, but its plans have been hindered by the dearth of major motion on banking reform and federal legalization.
Tilray said its net loss for the three months ended May 31 was $119.8 million, or 15 cents a share, an improvement from the year-ago period when it lost $457.8 million, or 99 cents a share. Analysts polled by Refinitiv, nonetheless, expected a loss per share of just 5 cents per share.
Meanwhile, revenue soared 20% to $184.2 million, up from $153.3 million within the year-earlier period. That got here in well above analysts’ expectations of $154 million, in line with Refinitiv.
Tilray stock surged after releasing quarterly results for its fiscal fourth quarter.
Tilray’s cannabis segment saw strong year-over-year growth after the company acquired Canadian rival HEXO in June for roughly $56 million. The sale cemented Tilray’s leading position in Canada’s cannabis market.
The cannabis segment, which deals within the cultivation, production, distribution and sale of each medical and adult-use cannabis products, saw revenue increase 21% to $64.4 million for the quarter.
“The recent closing of the HEXO transaction has boosted our competitive positioning in Canada, the biggest, federally legalized cannabis market on the planet,” said Tilray CEO Irwin Simon in an announcement.
Simon said the company plans to lean into its consumer packaged goods business. It also plans to expand its product distribution in Canada and across international markets.
Tilray also saw healthy sector growth at its beverage alcohol and distribution businesses, which brought in $32.4 million and $72.6 million in revenue throughout the period, respectively, marking year-over-year increases of 43% and 19%.
For its fiscal yr 2024, the company is forecasting adjusted EBITDA of $68 million to $78 million, representing growth of 11% to 27% over fiscal yr 2023.