The cannabis (HMMJ) space is in a growth stage, with companies such as Tilray (TLRY), Canopy Growth (WEED), Cronos Group (CRON), and Aurora Cannabis (ACB) expected to reinvest their profits in expanding their capacity and operations.
Loss per share
As the benefits of those investments are not likely to turn over quickly, cannabis companies could report losses. Tilray is expected to report a loss per share of $0.13 in the fourth quarter, compared with losses of $0.20 in the previous quarter and $0.17 two quarters prior.
What to watch
As the industry is shaping out, investors must closely watch companies’ guidance. These expectations should set the stage beyond the next few quarters and could help investors understand Tilray’s core focus.
We’ll be particularly interested in the company’s foray into the US market, which is much larger than Canada’s. Tilray’s peers are also focusing on US developments. To learn more, read Marijuana Support: Senator Cory Booker Announces Presidential Bid.