Canadian cannabis company Cronos Q2 earnings fall short of estimates

/ / News

Canadian cannabis company Cronos Group Inc. said Thursday it had a net loss of $55.8 million, or 31 cents a share, in the second quarter, after earnings of $203.8 million, or 16 cents a share, in the year-earlier period. Revenue net of excise taxes came to $9.9 million, up from $7.7 million a year ago. The FactSet consensus was for a loss per share of 7 cents and revenue of $12.7 million. “In the second quarter of 2020, we continued our progress despite unprecedented shifts in our industry and the global economy,” Chief Executive Mike Gorenstein said in a statement. Revenue was boosted by continued growth in the Canadian adult-use market, sales stemming from the launch of vaporizers in Canada, and of the Redwood acquisition in results. “While the production and sale of cannabis have been generally allowed to continue in the various geographies in which Cronos Group operates, due to ongoing developments and uncertainty resulting from the COVID-19 pandemic, it has been difficult to predict the continuing impact that COVID-19 will have on the Company,” Cronos said in a statement. U.S.-listed hares fell 2% premarket and are down 9% in the year to date, while the Cannabis ETF has fallen 16% and the S&P 500 has gained 3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.