traded higher in premarket trading Wednesday after the Canadian cannabis company posted earnings that beat expectations but revenue that missed forecasts.
) posted third-quarter adjusted earnings of 9 cents a share, topping expectations for a loss of 8 cents a share. Net revenue increased 23% to $152 million, driven by 32% growth in cannabis revenue and 64% growth in beverage alcohol revenue. Analysts surveyed by FactSet were expecting $156.2 million in revenue.
Still, investors may have been buoyed by Tilray’s sneak peek at guidance. The company reaffirmed that it was on track to achieve $4 billion in revenue by the end of fiscal 2024, said CEO Irwin Simon.
International cannabis revenue in the third quarter rose 4,000% over the prior-year quarter, the company said, and it maintained leading market share in Canada, amassing 10.2% of the share. EMEA revenue increased by 37%, the company said, while U.S. operations became profitable, the company said.
“In the U.S., our SweetWater Brewing, Breckenridge Distillery, and Manitoba Harvest businesses are profitable, growing and emerging as nationwide, iconic brands with loyal followings that will be home to THC-based products upon U.S. federal legalization,” Simon said.
Last week, the House of Representatives passed a bill to decriminalize marijuana at the federal level. While the bill’s prospects in the Senate look bleak, it has renewed hope that the push to legalization is one step closer.
Tilray stock was up 7% to $7.52 in premarket trading on Wednesday.
Write to Sabrina Escobar at [email protected]