Tilray Brands, Inc. (TLRY Stock) Reported a Loss for the First Quarter and Failed to Meet Revenue Estimates

TLRY Stock

Tilray Brands, Inc. (TLRY Stock) reported a quarterly loss of $0.08 per share, much worse than the loss of $0.06 per share anticipated by the Zacks Consensus Estimate. This is in contrast to the loss of $0.08 per share recorded a year earlier. These numbers have been modified to account for one-time events.

This quarterly report includes a loss in earnings that is 33.33 percent unexpected. Before the end of the previous quarter, it was anticipated that this firm would report a loss of $0.07 per share; however, it produced a loss of $0.34, which resulted in a surprise of -385.71%.

The firm exceeded the consensus expectation for its earnings per share (EPS) during the previous four quarters.

Tilray Brands, Inc., which is in the Consumer Products – Staples business, according to Zacks, reported revenues of $153.21 million for the quarter that ended in August 2022. This result was below the Zacks Consensus Estimate by 1.59%. This is in comparison to revenues of $168.02 million the previous year. During the past four quarters, the firm has only surpassed the consensus sales expectation once.

The stock’s immediate price movement based on the newly revealed figures and future earnings projections will largely depend on the comments provided by management during the earnings call to maintain its current level of sustainability.

Shares of Tilray Brands, Inc. have dropped by about 44.5% since the beginning of the year, compared to the decrease in value of the S&P 500 of -21.4%.

Where Will Tilray Brands, Inc. (TLRY Stock) Go From Here?

The question that arises in shareholders’ minds, even though Tilray Brands, Inc. lagged the market thus far in 2018, is: what’s next for the stock?

There is no straightforward response to this essential question; nonetheless, the profits projection for the firm is a trustworthy metric that may assist investors in addressing this issue. This not only includes the current consensus earnings forecasts for the upcoming quarter(s), but it also includes how these predictions have evolved in recent times.

There is a significant association between near-term market movements and trends in earnings estimate revisions, according to empirical studies. Investors have the option of monitoring these adjustments on their own or relying on a rating technique that has been tried and proven, such as the Zacks Rank, which has an exceptional track record of maximizing the impact of earnings estimate revisions.

Prior to the publication of these earnings results, the pattern of estimate revisions for Tilray Brands, Inc. (NASDAQ:TLRY) was mixed. Even though the degree and direction of estimate revisions might vary as a result of the recently published earnings report of the firm, the stock now has a Zacks Rank #3 (Hold), which indicates that investors should maintain their existing holding position. Therefore, in the not-too-distant future, it is anticipated that the performance of the shares will be comparable to that of the market. 

In the days that are to come, it will be quite fascinating to observe how the projections for the upcoming quarters and the current fiscal year alter. The current average estimate for EPS is -$0.06, which would be based on revenues of $158.15 million for the next quarter, and -$0.22, which would be based on revenues of $652.08 million for the current fiscal year.

Investors need to keep in mind that the forecast for the industry can have a significant effect not only on the performance of the stock but also on the performance of the industry overall. Consumer Products – Staples is presently ranked in the bottom 41% of all of Zacks’s more than 250 different sectors in terms of the Zacks Industry Rank. According to the findings of our research, the top 50% of sectors listed by Zacks do much better than the bottom 50% by a proportion of more than 2 to 1.

Newell Brands (NWL), another company originating from the same sector, has not yet reported its financial results for the three months that ended in September 2022.

In the forthcoming report, this consumer goods firm is anticipated to announce quarterly earnings of $0.47 per share, which indicates a decrease of -13% when compared to the previous year’s results. The consensus earnings per share forecast for the quarter has been revised down by 34.9% to its current level over the course of the past 30 days.

It is anticipated that Newell Brands’ revenues would come in at $2.29 billion, representing a decrease of 17.9% from the same quarter a year earlier.

Featured Image-  Megapixl @ Zuzuan

Please See Disclaimer

 

About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.