Tilray Valuation Attractive With Strong Growth Overseas, Analyst Says

Tilray Brands Inc. (NASDAQ:TLRY) on Thursday reported quarterly earnings of one cent per share, which beat the Street estimate for a loss of 20 cents.

Quarterly revenue came in at $217.51 million, which beat the consensus estimate of $210.95 million.

Cannabis net revenue increased 3% to $67.5 million, Beverage net revenue was $50.1 million, and Wellness net revenue was $14.6 million.

Cannabis sales jumped as a result of a 36% increase in international cannabis and a 6% increase in Canadian adult-use cannabis.

Distribution net revenue, which includes Tilray Pharma, grew to the company's highest revenue quarter ever to $85.3 million.

"…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," said Irwin Simon, Chairman and CEO.

Analyst Take

Zuanic & Associates' analyst Pablo Zuanic said the over 50% sequential sales growth in international MMJ and 26% year-over-year sales growth in CC Pharma (an underappreciated piece of the company's German infrastructure), combined with significant yoy improvement in FCF, were the key highlights.

The stock valuation is attractive at 1.2x EV/Sales, Zuanic wrote in an investor note on Friday, given Tilray's global potential.

While the analyst maintains a Neutral stance, it is tracking growth trends in international MMJ, the turnaround in beverage sales and profit margins, FCF trends, and the company's potential angling ahead of the U.S. opportunity.

TLRY Price Action: Tilray Brands shares were up 2.52% at $9.36 at the time of publication on Friday, according to Benzinga Pro data.

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