Home Cannabis Analysts Expect Tilray's Gross Margin to Expand

Analysts Expect Tilray’s Gross Margin to Expand


In this part, we’ll look at analysts’ estimates for Tilray’s (TLRY) gross margin. Cannabis companies must mitigate pressure on margins as a result of commoditization.


As shown in the above chart, Tilray’s gross margin is expected to expand sequentially in the fourth quarter, to 49% from 31%. As the cannabis space gets crowded, companies that innovate and differentiate cannabis-derived products will likely have an edge, as unique products could command a premium and expand margins. To see if Canopy Growth (WEED), CannTrust (CNTTF), Aphria (APHA), and others (MJ) are doing this, pay attention to their long-term investments.

Canopy Growth on commoditizing

Canopy Growth CEO Bruce Linton believes that dried flower will continue to command a premium—that is, it won’t become a commodity—because consumers want good-quality, premium products. To learn more, read CGC’s Linton Doesn’t See Dried Cannabis Commoditizing. Let’s now turn our attention to analysts’ EPS expectations for Tilray.

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