Tilray Stock Tanks Following Earnings Miss, Outlook Cut

Shares of Tilray Brands (TLRY) plummeted Tuesday after the marijuana products maker and craft beer brewer posted worse-than-expected quarterly results and reduced its full-year earnings guidance as cannabis sales slipped.

Tilray reported a third-quarter fiscal 2024 loss of $0.12 per share, more than double estimates. Revenue rose 29.4% to $188.3 million, but that was more than 5% below forecasts.

The company’s cannabis revenue of $63.4 million, while higher year-over-year, declined 5.5% from the second quarter. Tilray doesn’t sell cannabis in the U.S. because of federal drug laws, and noted that the “rescheduling of cannabis could open a path for Tilray to leverage its expertise in Canadian and European medical cannabis to distribute medical cannabis in the U.S.”

Beverage-alcohol unit sales soared 165% from a year earlier to $54.7 million following the Sept. 2023 acquisition of five craft breweries and three other beverage companies from Anheuser-Busch InBev (BUD). Beverage-alcohol sales accounted for 29% of Tilray’s overall revenue, a jump from 14% in the prior year.

Tilray now expects full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be in a range of $60 million to $63 million, down from its previous outlook of $68 million to $78 million. In addition, the company no longer anticipates generating positive adjusted free cash flow because of “delayed timing for collecting cash on various asset sales.”

The news sent Tilray Brands shares down 21% to $2.03 as of 11:05 a.m. ET, and into negative territory for the year.