Tilray (Nasdaq: TLRY) will issue its fourth quarter and full-year 2019 earnings results on Monday, March 2, 2020 after the market close. Analysts expect the marijuana producer to post a loss of $0.35 per share on revenue of $55.92 million for the fourth quarter of 2019. In line with the bearish market scenario, Tilray stock tumbled to a new 52-week low ($13.20) in the first hour of today’s trading session. However, TLRY recovered from the downtrend and ended the day down 0.76%.
While the company’s loss is expected to expand further in the fourth quarter, revenue is estimated grow more than 250%, aided by the company’s global expansion initiatives and strategic partnerships like the ones with AB InBev (NYSE: BUD) and acquisitions. Tilray is expected to complete the FOUR20 acquisition by the end of Q1 2020.
Looking Back
When Tilray reported its third quarter 2019 earnings results in last November, the company’s loss per share was wider than its prior-year quarter and the consensus estimate. However, revenue surpassed the Street’s target and more than quadrupled from the prior-year level, aided by the Canadian adult-use market, the Manitoba Harvest acquisition, and growth in international medical markets.
Global Expansion
in December, Tilray entered into Switzerland to distribute medical cannabis products, from its Good Manufacturing Practices (GMP)-certified production facility, to patients in need.
The Nanaimo, British Columbia-based weed firm entered into a 2.5 tonne strategic partnership agreement with Canndoc in early January to address the growing demand for medical cannabis products in Israeli market. Tilray’s Portugal subsidiary Tilray Portugal Unipessoal Lda will export the medical cannabis to Israel. The company now exports medical cannabis to 15 countries.
Job Cuts
In order to reduce costs and achieve profitability, Tilray trimmed down its workforce by 10% in early February. The company hopes to achieve positive EBITDA in Q4 of 2020. It’s worth noting another cannabis major Aurora Cannabis (NYSE: ACB) followed Tilray and reduced about 500 jobs. Also, with the exit of CEO Terry Booth and the write-downs announced by Aurora, ACB stock witnessed a heavy sell-off.
Leadership Hires
In January, Tilray appointed Michael Kruteck as its CFO, replacing Mark Castaneda. Krutek served in various senior finacial roles in Molson Coors Beverage Company and he most recently as CFO for Pharmaca Integrative Pharmacy. The company also hired former Revlon executive Jon Levin as COO last month.
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Earlier this week, analyst firm Cowen downgraded Tilray. The coronavirus outbreak is expected to impact the global manufacturing supply chain with the majority of the vape products are manufactured in China, the most affected country by COVID-19. Shares of Tilray have dropped 26% in the past 30 days and 16% so far this year.