Shares of Canadian cannabis giant Tilray (NASDAQ:TLRY) shot up 16% in early trading after reporting a surprise profit in its third-quarter results. Moreover, with double-digit growth in sales, the quarter was a step in the right direction for those betting on TLRY stock.

Analysts surveyed by FactSet were expecting Tilray to post a loss of eight cents per share. However, the business announced a surprise profit of nine cents per share, with its revenues growing a healthy 23% from the prior-year period. Cannabis sales were up 32%, while beverage alcohol sales rose 64% from the same period last year. Sales came in at roughly $4.77 million, below analyst consensus estimates. CEO Irwin Simon felt such results would bring the business closer to his $4 billion revenue target by 2024. Though the cannabis firm saw impressive momentum across its key business segments, it’s still a long time from the $4 billion mark.

In addition to its strong top and bottom-line growth, it announced a partnership with U.S.-based super-market chain Whole Foods Market. Over 300 Whole Foods stores across the U.S. and Canada will now be carrying the company’s hemp and wellness products.

TLRY stock is likely to be volatile along the way, though. The stock has shed over 68% of its value over the past year. However, the stock snapped back in the past month, gaining a tremendous 29%. Moreover, the stock trades at just under 5.50 times forward sales, in line with the sector average.

However, its trailing-twelve-month revenues of just under $600 million suggest that Tilray has to turn on the afterburners. Nevertheless, the third-quarter results were a confidence booster for those holding TLRY stock for the long haul.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.