By Sam Boughedda
Investing.com — GLJ research told investors on Monday that following Tilray Inc 's (NASDAQ:TLRY) second-quarter results, they would be "aggressively adding to short positions," raising questions about the company's numbers.
Tilray shares are currently up 12% following the earnings report.
The cannabis-lifestyle and consumer packaged goods company announced earnings per share of $0.00 on revenue of $155 million.
Commenting on the results, Irwin Simon, Tilray's chairman and CEO, said: "Our second quarter performance reflects notable success building high-quality and highly sought-after cannabis and lifestyle CPG brands which, coupled with our scale, operational excellence and broad global distribution, enabled us to increase sales and maintain profitability despite sector-specific and macro-economic headwinds."
Despite Simon's positivity, GLJ analysts Gordon Johnson and James Bardowski said their read on the company's fiscal second quarter 2022 "reveal a company teetering on the edge of disaster."
The analysts questioned the reported revenue growth, saying their own calculations have revenue falling 14% from the prior year compared with the 20% gain reported by the company. The analysts said the "surprise profit" was entirely due to "non-operating items (i.e., because the stock fell 26% during the quarter, the embedded options within Tilray's warrants and convertible debt were all marked to a much lower market, resulting in a substantial non-cash, accounting gain)."
The analysts reiterated a sell rating and 82 cent per share price target on Tilray. The company's share price is currently trading around the $7.20 mark.