Tilray Brands, Inc. (NASDAQ:TLRY) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year
It's been a mediocre week for Tilray Brands, Inc. (NASDAQ:TLRY) shareholders, with the stock dropping 13% to US$2.00 in the week since its latest quarterly results. It was a pretty bad result overall; while revenues were in line with expectations at US$194m, statutory losses exploded to US$0.07 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Tilray Brands
Taking into account the latest results, the most recent consensus for Tilray Brands from 16 analysts is for revenues of US$811.0m in 2024. If met, it would imply a solid 16% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 88% to US$0.23. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$806.5m and losses of US$0.27 per share in 2024. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a notable improvement in losses per share in particular.
There's been no major changes to the consensus price target of US$2.61, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Tilray Brands analyst has a price target of US$4.25 per share, while the most pessimistic values it at US$1.90. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Tilray Brands' rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 25% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tilray Brands to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Tilray Brands analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Tilray Brands has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
