Tilray (NASDAQ:TLRY), Canada’s largest cannabis producer is all set to announce the third-quarter results before the market opens on April 6, 2022. It will give us a report card on the market in Canada as well as the company’s future expansion goals. The company cultivates and sells medicinal and recreational cannabis and makes money through multiple streams. Tilray is consistently growing its market share and TLRY stock is set to grow with it.
The company had reported the second-quarter results in January where its total revenue stood at $155.2 million and the cannabis revenue was only 42% of it. Its distribution revenue made 57% of the total revenue. And net income stood at $6 million.
More than 75% of its revenue in the cannabis segment was from Canada but the company has diversified over the last year. We might see international revenue as a key driver this quarter. Legalization in the U.S., even if still only at the state level, will help the company grow its revenue stream over the coming quarters. Apart from Canada, Tilray also has a leading market position in Germany and is taking several steps to expand across the European Union.
In the last quarter, Tilray’s Wellness revenue stood at $13.8 million. This is compared to no revenue from this segment in the prior year’s second quarter. It will be interesting to see if it manages to improve the cash flow position. TLRY stock has fallen significantly over the last few months and is down 66% from over a year ago. Analysts expect the company to report revenue of $247.29 million this week.
The hopes of federal legalization in the U.S. have led to a reversal rally in TLRY stock. Last week, the House of Representatives approved a bill to legalize marijuana for the second time. This can benefit Tilary in the coming months.
TLRY stock is trading close to $7 today. Any news of legalization, as well as strong financial results, could push the stock higher.
On the date of publication, Vandita Jadeja 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.