Cronos hit by news of further delay to earnings amid review of accounting by internal and external experts

Tilray Inc. stock was the biggest decliner among Canadian licensed cannabis producers on Tuesday, as analysts weighed in on weaker-than-expected fourth-quarter earnings that included a revenue miss and $112 million impairment charge.

The cannabis sector was also weighed down by losses in the broader market, after a surprise 50 basis point rate cut by the Federal Reserve failed to have the desired effect. The Fed cut rates in a response to the expected economic impact of the coronavirus that has sickened more than 90,000 people around the world. Stocks initially rose but quickly turned lower. The Dow Jones Industrial Average DJIA, -3.57% was last down more than 400 points, while the S&P 500 SPX, -3.39% was down 31 points.

The only positives in the Tilray TLRY, -10.47% report “are coming from promises,” said Jefferies analysts Owen Bennett and Ryan Tomkins, noting sales, margins and earnings before interest, taxes, depreciation and amortization (EBITDA) all worsening from the previous quarter. The revenue miss was mostly due to a decline in bulk sales, with the company warning that demand for extract products and feedstock has dissipated in Canada, and forecasting that trend to continue into 2020, they wrote.