Tilray (TLRY) Pre-Earnings: Analysts Expect a 57% EPS Jump

Shares of cannabis company Tilray (TLRY) sank in today’s trading as investors await its Q2 earnings results on January 10 before the market opens. Analysts are expecting earnings per share to come in at -$0.03 on revenue of $216.34 billion. This equates to 57.1% and 11.6% year-over-year increases, respectively, according to TipRanks’ data. It’s worth noting that Tilray has not beaten earnings estimates for 10 consecutive quarters.

And there are reasons to believe that this losing streak could continue. In fact, according to TipRanks’ Bulls Say, Bears Say tool, bearish analysts point to ongoing challenges in the core business due to falling prices in the Canadian market. In addition, the lack of progress from U.S. lawmakers to legalize marijuana at the Federal level is likely limiting the firm’s upside potential.

Nevertheless, it is important to not forget about the bullish arguments, which includes the growth of Tilray’s international business. In addition, since investors are likely expecting the earnings miss streak to continue, a surprise beat will make the stock much more likely to jump.

What Do Options Traders Anticipate?

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. Indeed, the at-the-money straddle suggests that options traders expect a 24.55% price move in either direction. This estimate is derived from the $1.50 strike price, with call options priced at $0.12 and put options at $0.22.

Is TLRY Stock a Buy, Sell, or Hold?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on TLRY stock based on two Buys, five Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 34% decline in its share price over the past year, the average TLRY price target of $2 per share implies 44.9% upside potential.

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