Tilray Inc (NASDAQ:TLRY) shares plunged more than 16% after the cannabis and consumer packaged goods-producer's fiscal third quarter financial report disappointed investors.
Revenue fell year-over-year to $185.8 million from $188.3 million, well below expectations of $209.8 million.
Cannabis revenue fell 14% from the year-ago quarter to $54.3 million while beverage alcohol sales grew 2.3% to $55.9 million.
The company reported a net loss of $793.5 million due to a $700 million non-cash impairment.
Adjusted earnings per share were flat, better than the loss per share of $0.03 expected.
Analysts at Jefferies noted the topline miss but see the company’s focus on margins as encouraging, with gross margins up 61 basis points on better mix and lower costs.
They described it as a “mixed quarter” and noted that fiscal 2025 is “still a transition year” for Tilray.
Jefferies has a ‘Buy’ rating on Tilray and a $2.50 price target, implying upside of 332% at the time of writing.
Shares of Tilray traded down 16.7% at $0.48 in the early afternoon on Tuesday.