Industry Analysts Just Upgraded Their Tilray Brands, Inc. (NASDAQ:TLRY) Revenue Forecasts By 13%

Tilray Brands, Inc. (NASDAQ:TLRY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After this upgrade, Tilray Brands' ten analysts are now forecasting revenues of US$813m in 2024. This would be a sizeable 25% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 89% to US$0.21 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$717m and losses of US$0.22 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

View our latest analysis for Tilray Brands

There was no major change to the consensus price target of US$2.89, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Tilray Brands' rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 29% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tilray Brands to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Tilray Brands is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Tilray Brands.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risks with Tilray Brands, including dilutive stock issuance over the past year. You can learn more, and discover the 2 other risks we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.