Tilray Inc. shares dropped more than 12% in premarket trade Tuesday, after the weed company posted revenue that missed Wall Street estimates and a larger-than-expected loss.
The company reported a fourth-quarter net loss of $219.2 million, which amounts to $2.14 a share, versus a loss of $31 million or 33 cents a share in the year-ago quarter. Revenue rose to $46.9 million from $15.5 million in the year-ago quarter. Tilray’s revenue includes excise taxes of $4.4 million for the fourth quarter of 2019.
Tilray TLRY, -15.18% said that it recorded a non-cash charge of $112.1 million related to the impairment of an agreement with the Authentic Brands Group that the company had previously signed. When the company inked the partnership 2019, Tilray said it was part of its plan to get marijuana products into more retail outlets and to market consumer brands around the world.
Analysts surveyed by FactSet had estimated a loss of 36 cents a share on revenue of $55.3 million. For the first quarter, analysts model a loss of 30 cents a share and sales of $61.7 million.
Like many of the largest names in the cannabis sector, Tilray stock has been punished by investors over the past year. Shares have plunged 81% over the past year, as the S&P 500 index SPX, -2.81% has gained 5.4%.