Tilray’s Stock Falls 12% After Earnings Miss

Cannabis company Tilray Inc. (NASDAQ:TLRY) saw its stock fall 12% in extended trading after the company missed revenue estimates for the fourth quarter.

The Toronto-based company reported revenue of $46.9 million while analysts polled by Refinitiv expected $55.4 million. The company also reported a net loss for the quarter of $219.1 million or $2.14 per share.

Tilray said it sold $17 million worth of recreational cannabis in the period, up 7.4% from the prior quarter. Its adjusted EBITDA loss of $35.3 million also missed the consensus expectation of $21.8 million and was wider than the biggest estimated loss of $29.3 million.

Along with its earnings, Tilray announced that it closed a $60 million senior credit facility on February 28 with a two-year term and 8% interest. The company ended 2019 with $97 million in cash, a number that has prompted some analysts to question whether it has enough funding to support its operations.

Tilray recorded a $68.6-million inventory write down and a $112 million impairment charge related to its revenue-sharing agreement with Authentic Brands Group.

Other cannabis companies fell in sympathy with Tilray. Canopy Growth Corp. (TSX: WEED) was down 2.4%, Aurora Cannabis Inc. (TSX:ACB) lost 1.5% and Aphria Inc. (TSX:APHA) fell 1.4% in pre-market trading Tuesday.