HomeMost PopularInvestingTilray Brands (TLRY) Reports Q1 Loss Expansion, But Revenues Increase

Tilray Brands (TLRY) Reports Q1 Loss Expansion, But Revenues Increase

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Tilray Brands, Inc. (TLRY) recently released its financial report for the first quarter of fiscal 2024, revealing a wider-than-expected loss. However, the company managed to beat the Zacks Consensus Estimate for its top line. Although the stock has experienced a 41.3% increase over the past three months, it currently holds a Zacks Rank #3 (Hold).

Key Highlights from Q1

Tilray Brands reported a loss of 10 cents per share for the quarter, which was higher than the Zacks Consensus Estimate of a 5 cent loss per share. In comparison, the company reported a loss of 13 cents per share in the same quarter last year.

Despite the loss, total revenues for the quarter increased by 15% year over year to reach $177 million, surpassing the consensus estimate of $175 million. Cannabis net revenues saw a 20% climb to $70 million, while net cannabis revenues hit $71 million, showing a 22% increase on a constant-currency basis. Beverage alcohol net revenues also saw a 17% rise to $24 million. Distribution net revenues grew by 14% to $69 million, with distribution revenues reaching $67 million on a constant-currency basis, marking an 11% increase from the previous year’s quarter.

An image depicting the Price, Consensus, and EPS Surprise of Tilray Brands can be found here.

Adjusted gross profit for the quarter was $49 million, resulting in an adjusted gross margin decrease of 400 basis points from the prior-year quarter, settling at 28%. Adjusted EBITDA dropped to $11.4 million, down from $13.5 million in the same quarter last year, mainly due to the prior-year HEXO advisory fee revenues.

The company achieved $17.1 million in annualized run-rate savings, which are related to the $27 million synergy plan tied to the HEXO acquisition. These savings represent progress toward the integration plan goals and demonstrate Tilray Brands’ confidence in the success of the HEXO acquisition. Additionally, the company has managed to accomplish $6.8 million in annualized run-rate savings related to the $8 million cost reduction plan in Europe.

Financial Outlook

Tilray Brands has reiterated its adjusted EBITDA guidance for the fiscal year ending May 31, 2024. The company expects adjusted EBITDA to range from $68 million to $78 million, indicating a growth of 11-27% compared to fiscal 2023. Furthermore, management anticipates generating positive adjusted free cash flow.

Investment Opportunities

If you are looking for investment opportunities within the consumer staples sector, consider the following stocks:

Inter Parfums (IPAR): Inter Parfums, a manufacturer, marketer, and distributor of fragrances and fragrance-related products, currently holds a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for Inter Parfums’ current financial-year sales reflects a growth rate of 19.7% from the previous year. IPAR also boasts an average trailing four-quarter earnings surprise of 45.9%.

Helen of Troy (HELE): Helen of Troy is a provider of various consumer products and currently holds a Zacks Rank #2 (Buy). The company’s expected earnings per share growth rate for the next three to five years is 8%. Although the Zacks Consensus Estimate for Helen of Troy’s current fiscal-year sales suggests a decline of 2.9% from the previous year, it has an average trailing four-quarter earnings surprise of 8.1%.

Ingredion Inc. (INGR): Ingredion is a producer and distributor of sweeteners, nutrition ingredients, and biomaterial solutions. The company holds a Zacks Rank #2. The Zacks Consensus Estimate for Ingredion’s current financial-year earnings per share is expected to rise by 23.9% compared to the previous year.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the views of Nasdaq, Inc.

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