Tilray Inc. shares fell more than 7% in the extended session Tuesday after the Canada-based marijuana producer reported wider-than-expected second-quarter losses but beat revenue forecasts.
Tilray /zigman2/quotes/209129655/composite TLRY -10.74% reported a second-quarter net loss of $35.1 million, or 36 cents a share, versus losses of $12 million, or 17 cents a share, in the year-ago period. Revenue including excise taxes rose to $45.9 million from $9.7 million in the year-ago period.
Removing excise taxes of $3.9 million, Tilray reported revenue of $42 million.
Analysts surveyed by FactSet had estimated losses of 28 cents a share on net revenue of $40.3 million.
In a telephone interview late Tuesday, Tilray Chief Executive Brendan Kennedy said that given what Tilray has experienced in the past six to eight weeks, he believes there is a slight easing in terms of available cannabis supply in Canada.
“I wouldn’t say I’m optimistic, but I’m less skeptical,” Kennedy said. “It really supports our asset-light cultivation model in Canada.”
Kennedy said that the company will “potentially” announce supply deals in the coming months, referencing the July deal it inked with Zenabis Global Inc. for C$30 million of pot.
During the second quarter, Tilray said it sold 5.59 metric tons of weed, up from 3.01 metric tons in the first quarter. Without excise taxes, the average selling price per gram dropped to $3.92 versus $5.28 per gram in the first quarter.
For the third quarter, analysts estimate losses of 26 cents a share on sales of $50.8 million.
Tilray stock has fallen 35% this year, with the S&P 500 index /zigman2/quotes/210599714/realtime SPX -3.35% rising 15%.