- Crono's lost revenue and expected revenues for the fourth quarter.
- Stocks slipped more than 4% early on Tuesday.
- Watch Cronos trade live.
The Cronos cannabis producer fell more than 4% early on Tuesday after missing Wall Street's revenue estimate for the fourth quarter.
Cronos reported revenues of 5.6 million Canadian dollars, well below the consensus estimate of 10.8 million Canadian dollars and below all analyst estimates. Expectations for the quarter were high, with analysts surveyed by Bloomberg, forecast sales growth of more than 500%. The company has a loss of 0.11 Canadian dollars a share for the fiscal year 2018.
"We have expanded our production footprint internationally, developed our distribution with global partnerships, launched iconic brands for the Canadian Adult Market and grew Our IP portfolio with landmark research and development initiatives, says CEO Mike Gorenstein in the press release.
Cronos Group has often been at the forefront of the change in the rapidly growing cannabis sector.
Altria Group, the manufacturer of Marlboro cigarettes, invested $ 1.8 billion in the Cronos Group in December 2018, giving it a 45% stake in the cannabis producer. At Crono's current share price of around $ 20, Altria's investment in the company more than doubled.
"Altria is the ideal partner for Cronos Group, and provide the resources and expertise we need to increase our strategic growth in a meaningful way, ”Gorenstein said on inv The esterification
In February 2018, Cronos became the first company to grow and sell marijuana to be listed on a US exchange that paves the way for publicly traded rivals Canopy Growth and Aurora Cannabis. Cronos previously traded in Canada.
Cronos Group, founded in 2013, owns and operates marijuana cultivation and distribution brands. It owns 100% of both Fred Naturals and Original BC, which are licensed to grow and sell medical marijuana.
Cronos has been one of the strongest players on Nasdaq since listing in February 2018, and has increased 181% over the last 12 months. Inventories were up 89% this year to Monday.