Investors in cannabis stock Tilray Brands (NASDAQ:TLRY) received encouraging news today, as the company’s earnings report surpassed expectations across all key metrics.
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Specifically, Tilray reported fiscal fourth-quarter revenue of $230 million, marking a year-over-year increase of approximately 25% and exceeding the consensus estimate of $225 million. Additionally, the company posted adjusted earnings of 4 cents per share, outperforming the forecasted loss of 2 cents per share. Adjusted EBITDA rose 37% year-over-year to $29.5 million, surpassing the Street’s estimates of $27.5 million.
Looking ahead, the company forecasts FY25 net sales between $950 million and $1 billion, up from $789 million in FY24.
Pablo Zuanic, managing partner at Zuanic & Associates, commented on the results, saying, “We have increased our net sales estimates to $900Mn (1.05 x $855Mn), but we will remain a shade below guidance.”
Despite the positive earnings report and outlook, Zuanic maintains a Neutral stance on Tilray shares, at least for now. “As we stated in our initiation report, we have preferred to say Neutral (partly on valuation) until we have better line of sight on: a) actual international markets growth and how TLRY directly benefits (can it hold on to share); b) Tilray’s ability to reverse recent domestic rec market share loss, c) accretion, nature, and scope from future US deals, and c) progression of key financial metrics improve (FCF, EBITDA per share),” Zuanic explained.
Nevertheless, Zuanic acknowledges that the fourth-quarter results and FY25 guidance could boost investor optimism.
Looking at the consensus breakdown, 1 Buy and 2 Holds have been published in the last three months. As a result, TLRY gets a Moderate Buy consensus rating. Given the $2.35 average price target, shares could rise 28% in the next year. (See TLRY stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
