Piper Sandler on Tilray Q2; Canada Revenues Below Expectatio Piper Sandler on Tilray Q2; Canada Revenues Below Expectations; EBITDA Margins Better
MIDNIGHTTRADER - Updated 11 minutes ago
08:21 AM EST, 01/10/2022 (MT Newswires) -- Michael Lavery over at Piper Sandler noted Monday that Tilray reported Q2 Fiscal 2022 revenues of US$155.2 million, below his $165.1M estimate and consensus of $170.5M. It reported adjusted EBITDA of $13.8M, better than its "conservative" $7.5M estimate and its eleventh consecutive quarter of positive adjusted EBITDA. Lavery noted TLRY achieved $70M in cost-savings on a run-rate basis to date and expects to exceed initial target of $80M from Aphria and Tilray synergies ahead of schedule, along with an additional $20M of synergies in F23. Tilray reported near 20% revenue growth on a year-over-year comparison to its legacy Aphria business, but was down 9.5% on a pro-forma basis. Its revenues were down near 8% sequentially. "Tilray is under intense competitive pressure in Canada, where it is making 'strategic price adjustments'; we expect that pressure to continue near-term," Lavery said.