- Cronos missed its earnings and sales expectations in the fourth quarter.
- early Tuesday more than 4%.
- See how Cronos is traded live.
Cronos cannabis producer fell more than 4% on Tuesday after missing out on Wall Street's fourth-quarter revenue estimate.
Cronos achieved sales of 5.6 million Canadians well below the consensus estimate of 10.8 million Canadian dollars and among all analyst estimates. Expectations for the quarter were high. Analysts surveyed by Bloomberg forecast sales growth of more than 500%. The company recorded a loss of $ 0.11 per share in the 2018 financial year.
"We have expanded our manufacturing footprint domestically and abroad, expanded our distribution with global partnerships, developed iconic brands for the Canadian adult market, and grew our IP portfolio with groundbreaking research and development initiatives," said CEO Mike Gorenstein Press release.
The Cronos group has often been at the forefront of change in the fast-growing cannabis sector.
Altria Group, makers of Marlboro cigarettes, invested $ 1.8 billion in the Cronos group in December 2018, accounting for 45% of the cannabis manufacturer. At Cronos' current share price of around $ 20, Altria's investment in the company has more than doubled.
"Altria is the ideal partner for the Cronos Group and provides the resources and expertise we need to make our strategic growth meaningful," said Gorenstein at the time of the investment.
In February 2018, Cronos became the first company that did so, growing and selling marijuana for listing on a US stock exchange, paving the way for publicly traded rivals Canopy Growth and Aurora Cannabis. Cronos was previously traded in Canada.
Founded in 2013, Cronos owns and operates marijuana marijuana brands. It owns 100% of the two Peace Naturals and Original BC licensed to grow and sell medical marijuana.
Cronos has been one of the strongest performers on the Nasdaq since it was listed in February 2018 and has risen 181% over the past 12 months. The stock gained 89% this Monday through Monday.