Shares of the cannabis company Tilray Brands (NASDAQ: TLRY) climbed higher Tuesday after it reported fourth-quarter results that beat analysts' consensus estimates on the top and bottom lines.
The company's shares jumped by as much as 17.5% early today and were up by 10.1% as of 3:53 p.m.
Rising earnings and revenue
Tilray generated $229.9 million in sales in the fourth quarter, up 25% from the year-ago quarter and ahead of Wall Street's consensus estimate of $227 million.
Revenue was driven higher mostly by the company's alcoholic beverage segment, thanks to new products and contributions from its craft beer acquisitions last year. Sales from this segment spiked 137% to $76.7 million, surpassing Tilray's cannabis revenue of $71.9 million.
Tilray acquired eight beer brands from Anheuser-Busch last year, making it the fifth largest craft brewer in the U.S.
Fourth-quarter earnings were also impressive. Adjusted earnings per share of $0.04 blew past analysts' consensus estimate of a loss of $0.02.
CEO Irwin Simon said on the company's earnings call, "Over the past fiscal year, our strategic acquisitions have significantly benefited our financial results, which we expect will continue to benefit us well into the future."
Growing financial strength
Management highlighted some of company's increasing financial strengths, including reducing its net convertible debt by $300 million and its adjusted gross profit of $235.6 million in fiscal 2024.
The company finished fiscal 2024 with a net loss of $224.4 million, which is a significant improvement over its loss of $1.4 billion in 2023.
That improvement likely also spurred investor optimism, along with the company's 2025 revenue outlook. Management estimates full-year sales between $950 million and $1 billion, which would represent a nearly 24% increase at the midpoint.
With the company's better-than-expected fourth-quarter results and its craft beer acquisition already paying off, it's no surprise to see investor optimism about Tilray's future.
Should you invest $1,000 in Tilray Brands right now?
Before you buy stock in Tilray Brands, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tilray Brands wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $683,777!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of July 29, 2024
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.
