Tilray Brands, Inc. (NASDAQ:TLRY) shares are gaining 11% in pre-open trading Wednesday after posting a profit in its third quarter on revenue that rose 23%, although numbers missed the consensus. The company also announced a promising deal with Amazon's Whole Foods.
Tilray announced that gross profit increased 31% to $40 million from $30 million in the prior-year quarter. Net income was $52.5 million. The quarter's earnings per share were $0.09, versus a loss of $1.03 per share last year. Adjusted EBITDA decreased 2% to $10.1 million, versus the consensus of $11.9 million.
Net revenue rose to $152 million in the quarter versus $124 million last year, but below the consensus of $156 million. Cannabis revenue rose 32%, and beverage alcohol revenue rose 64%.
In a separate release today, Tilray said its Manitoba Harvest entered an exclusive partnership with Whole Foods Market. The two will launch the brand's Hemp+ Matcha and Supergreens powders exclusively at Whole Foods across North America.
Despite the move higher in the stock, some analysts were not impressed with the results. Benchmark's Mike Hickey highlighted that revenue declined sequentially in the quarter, with cannabis revenue down 6% sequentially.
"We expect continued competitive pressure in the Canadian market will challenge market share expectations, with TLRY an approximate 10.2% market share," Hickey commented. "Growth continues to benefit from non-cannabis segments, including alcohol and wellness categories. The significant cost synergies from Aphria-Tilray combination ($76M) are not offsetting revenue weakness." He has a Hold rating on the stock.