After-Hours News: Tilray and Del Taco Report Earnings

Daniel Sparks, The Motley Fool - finance.yahoo.com Posted 5 years ago
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Fast-growing cannabis company Tilray (NASDAQ: TLRY) and fast-food company Del Taco (NASDAQ: TACO) were making big moves in after-hours trading on Monday. The volatility follows both companies' latest quarterly results, which were posted after market close.

Here's what investors should know about each of these companies' earnings reports.

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Tilray

Cannabis giant Tilray reported its fiscal fourth-quarter results after market close on Monday. With shares down nearly 40% over the last six months, investors were undoubtedly watching the company closely.

By the looks of the stock's 3.3% move higher in after-hours trading as of 4:31 p.m. EDT, Tilray managed to impress investors. Fourth-quarter revenue increased 203.8% year over year to $15.5 million. The results were driven by "bulk sales, inaugural sales in the Canadian adult-use market and accelerated wholesale distribution in export markets," Tilray said.

Kilograms sold were up threefold during the quarter, rising to 2,053 kilograms.

Tilray still isn't profitable. Indeed, the company's EBITDA came out to a loss of $17.8 million -- significantly worse than a $2.1 million loss in the year-ago period.

The company explained it by saying, "The increased net loss and Adjusted EBITDA declines were primarily due to the increase in operating expenses related to growth initiatives, expansion of international teams and costs related to financings and [mergers and acquisitions] activities."

Management believes there are still significant growth opportunities to capitalize on. "Looking ahead, we remain committed to pursuing global growth opportunities and will be disciplined in deploying capital," CEO Brendan Kennedy said, "particularly in the United States and Europe, where we believe we have multiple paths for value creation."

Del Taco

Mexican-American fast-food chain Del Taco's fourth-quarter results highlighted top- and bottom-line growth as well the company's 21st quarter in a row of comparable-restaurant sales growth.

Del Taco's fourth-quarter revenue was $157.3 million, up 7.3% year over year. Adjusted earnings per share were $0.18, up from $0.16 in the year-ago quarter. These results were about in line with what analysts were expecting for the two metrics.

Helping the quarter was 1.9% growth in systemwide comps, driven by a 1% increase in company-operated comps and a 3.2% rise in franchised comps. Management seemed pleased with its progress in fiscal 2018, pointing out its strong comps growth momentum, 25 new systemwide store openings throughout the year, and its effective cost management.

"[D]espite modest company comparable restaurant sales and meaningful wage and operating inflation," CEO John Cappasola, "we demonstrated effective cost management and pricing strategies to post a strong annual restaurant contribution margin that remained near or above 20% in each of the last four years."

Shares were down 5.6% in after-hours trading as of 5:04 p.m. EDT, but notably the stock was up 4.2% during the trading day on Monday, before the results were released.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.