Tilray gained over 4% in premarket trading

(Oct 7) Tilray Inc. gained over 4% in premarket trading, After a strong Q421 performance, Tilray is scheduled to announce the FQ1 earnings results of FY22 before market open.

The consensusEPS Estimate is -$0.07vs -$0.02 in FQ1 of FY21 and the consensus Revenue Estimate is $174.93M (+20.1% Y/Y).

Tilray is also focused on lowering its cost in several ways, and the results of its cost-saving efforts are already beginning to show up. In itsQ421 earnings call, the company indicated that its average cost per gram came in at $0.72, owing to improve yield, potency and cost control efforts that began in January. At the time, the management had also warned of a negative impact of $2.5M-$4M in Q122 net revenues, as the recent floods in Germany directly affected CC Pharma, which Aphria acquired in 2019.

Over the past three months, Tilrayacquireda majority of outstanding convertible notes of MedMen Enterprises as the company eyes the U.S. market in the event of federal legalization. Commenting on the transaction, Bank of America said that it sees the investment as apositive sign for Tilray, giving the company a foothold in the U.S. market with potential distribution opportunities with MedMen in Canada and Europe.

More recently, Tilray stockholders approved anincrease in the number of authorized shares of its common stock. With the additional authorized shares, Tilray is positioned to progress towards its goal of delivering $4B in revenue by FY24 end. The company is also targeting an increase in its retail market share from 16% to 30% by FY24 end.

Over the last 2 years, TLRYhas beaten EPS estimates38% of the time and has beaten revenue estimates 38% of the time.

Over the last 3 months, EPS estimates have seen 3upward revisionsand 1 downward. Revenue estimates have seen 1 upward revision and 7 downward.

The medical cannabis producer reported net revenue of $142.2M in Q421, up 25% Y/Ybut missing estimates. The revenue growth was attributed to a 36% rise in net cannabis revenue. The company ended the year with net revenue of $513.1M (+27% Y/Y), a significantly increased adj. EBITDA and a strong balance sheet and liquidity, includingcash and cash equivalents of $488.5M.

Tilray management is currently executing on a plan to drive accelerate growth and sustained profitability in global cannabis market. In the previous quarter, Tilray completed its business combination with Aphria. This strategic reverse acquisition is already showing synergistic results for TLRY, generating $35M in realized savings and is likely to generate upwards of $80M in synergies over the next 18 months.