Shares of Canadian marijuana company Tilray were moving down in after-hours trading on Tuesday after the company posted a wider than expected loss in the second quarter. Despite not beating earnings estimates, the company still beat revenue estimates.
The stock was down over 7% in after-hours trading.
For the second quarter, Tilray reported adjusted earnings per share of a loss of 32 cents. This is compared to the loss of 25 cents that expected. Despite the company tripling the marijuana it sold from the year ago quarter, expenses had risen. Revenue for the quarter was $45.9 million compared to $41.1 million expected.
On an unadjusted basis, the company reported a second-quarter net loss of $35.1 million, or 36 cents per share. This was bigger than the loss during the same quarter last year of $12.8 million, or 17 cents per share.
After excluding for acquisition-related expenses and an inventory accounting charge, the company said it lost 32 cents per share.
Tilray attributed the increase in its sales to its acquisition of hemp food producer Manitoba Harvest, as well as Canada legalizing recreational marijuana last year and growth in international markets, especially in Europe.
“The way we look at it is it’s early days, and we’re continuing to invest to build long-term value for our shareholders,” Tilray CEO Brendan Kennedy said on CNBC’s “Closing Bell .”
“If we looked at individual countries like Canada, for instance, we could be profitable there within two quarters. But when we look at one of the larger markets such as Europe, it’s still an opportune time to invest,” he added.