Tilray stock surges on earnings surprise

Tilray (TLRY.US) stock rose nearly 9.0% on Wednesday after the weed maker posted unexpected profit for the latest quarter, while also announcing an exclusive partnership with supermarket chain Whole Foods, which will sell the hemp powders produced by Tilray’s Manitoba Harvest subsidiary.

Company earned 9 cents a share, beating market expectations of 8 cents a share loss. Net revenue increased 23% to $152 million, mainly thanks to 32% growth in cannabis revenue and 64% growth in beverage alcohol revenue. Despite significant increase revenue figures came in below analysts’ estimates of $156.2 million.

Tilray maintained a dominant position in Canada with 10.2% cannabis market share mainly thanks to a comprehensive portfolio of adult-use brands, and rising demand for pre-roll and vape products.

Tilray (TLRY.US) - since mid-March share price have practically multiplied, however buyers failed to break above major resistance area around $9.00 which is marked with upper limit of the 1:1 structure, 23.6% Fibonacci retracement of the last downward wave and upper boundary of descending channel. As long as the price sits below it, sentiment remains bearish. Nearest support to watch lies around $4.80 and is marked with previous price reactions. Source: xStation5