Tilray Brands, Inc. (TLRY) shares jumped over 7% in extended trading Thursday after the cannabis company delivered a surprisingly strong second quarter that beat analyst expectations on both revenue and earnings.
The Numbers That Matter
Tilray reported earnings of one cent per share, which completely upended Wall Street's expectation for a loss of 20 cents. That's not a small beat—that's flipping the script entirely.
Revenue came in at $217.51 million, topping the consensus estimate of $210.95 million and marking another record quarter for the company.
"We achieved another record quarter with net revenue reaching $218 million, a result of disciplined execution within our diversified portfolio spanning cannabis, beverage, wellness and distribution sectors," CEO Irwin D. Simon said.
Betting Big on U.S. Medical Cannabis
Simon spent considerable time discussing Tilray Medical U.S., the company's new subsidiary designed to capture market share as federal cannabis regulations evolve.
"As the U.S. regulatory landscape progresses, Tilray is prepared to leverage its experience to play a key role in building a responsible, research-oriented national medical cannabis industry," Simon explained.
He laid out an ambitious plan: "With a dedicated team and platform already in place with Tilray Medical U.S., we intend to leverage the infrastructure, expertise and know-how developed in conjunction with Tilray Medical's expected $150 million global medical cannabis business and our $300 million Tilray Pharma medical distribution platform in order to rollout our repeatable medical model and expand upon our current research, as well as initiating new FDA trials and partnerships for product development."
Tilray stock rose 7.01% to $9.77 in Thursday's after-hours session.
