Tilray Brands Reports EPS Drop Despite Revenue Growth

Tilray Brands, Inc. is poised for an upcoming earnings report that could influence its stock price. Despite anticipated revenue growth, EPS is expected to show a significant loss, raising concerns among investors according to a recent report.

Date: 18-09-2024

AI Rating: 5

Tilray Brands, Inc. (TLRY) demonstrated a slight positive swing in its stock price of +0.56%, outperforming the S&P 500's minimal gain. However, the company's shares have overall declined by 6.74% over the past month, indicating a contrasting trend compared to the Consumer Staples sector's 4.12% gain and the S&P 500's 1.54% rise.

Investors are keenly awaiting Tilray's upcoming earnings report, where the Earnings Per Share (EPS) is projected at -$0.05, which is a 50% improvement compared to the same quarter last year. Despite the loss, this could indicate potential operational improvements.

In terms of revenue, the latest consensus projects it at $216.47 million, which signifies a 22.33% increase year-over-year. For the full year, projections are for earnings of -$0.16 per share and revenues of $901.62 million, representing year-over-year changes of +51.52% and +14.28%, respectively. These forecasts suggest robust revenue growth, albeit from a loss context.

The report also notes that the Zacks Consensus Estimate for EPS has seen a significant 28% decrease over the last 30 days, reflecting analysts' cautious sentiment towards the company's near-term performance. Currently, Tilray holds a Zacks Rank #3 (Hold), indicating neutral prospects.

With the Consumer Products - Staples industry ranked 89th, or the top 36% among over 250 industries, Tilray’s positioning within this category indicates competitive strength against sector peers. Despite the negative EPS outlook, the revenue growth expectations might mitigate broader concerns.

Stocks: TLRY