Beverages, Alcohol and Tobacco Stocks Q3 Recap: Benchmarking Tilray Brands (NASDAQ:TLRY)

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Beverages, Alcohol and Tobacco Stocks Q3 Recap: Benchmarking Tilray Brands (NASDAQ:TLRY)

Looking back on beverages, alcohol and tobacco stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Tilray Brands (NASDAQ:TLRY) and its peers.

These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.

The 14 beverages, alcohol and tobacco stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 2.7% below.

In light of this news, share prices of the companies have held steady as they are up 3.5% on average since the latest earnings results.

Tilray Brands (NASDAQ:TLRY)

One of the first companies to be federally licensed to produce and distribute cannabis, Tilray Brands (NASDAQ:TLRY) today offers cannabis and a variety of other wellness products.

Tilray Brands reported revenues of $200 million, up 13.1% year on year. This print fell short of analysts’ expectations by 9.4%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

Irwin D. Simon, Tilray Brands’ Chairman and Chief Executive Officer, stated, “As the Chairman and CEO of Tilray Brands, I am excited to lead a company that is disrupting the CPG industry through innovative products that are transforming the way consumers eat, drink, and unwind with cannabis, hemp and beverage products. Our investments in the cannabis, wellness, beverage, and distribution industries are focused on shaping the future and staying ahead of the curve. We are dedicated to executing our strategic plan to increase revenue, drive operational efficiencies, and improve margins and profitability while investing in our continued growth. Our commitment to innovation and growth is unwavering.”

Tilray Brands Total Revenue
Tilray Brands Total Revenue

Tilray Brands scored the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 112% since reporting and currently trades at $1.30.

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