Why Investors Were High on Cronos Group Today
The market caught a nice buzz from Cronos Group (NASDAQ: CRON) on the second-to-last day of the trading week. The Canadian pot company unveiled its second-quarter results, and investors found them encouraging enough to send Cronos stock nearly 5% higher. By comparison, the benchmark S&P 500 index increased by 2.3%.
Lighting up in Canada
For its second quarter, Cronos -- which reports in U.S. dollars -- took in nearly $27.8 million in revenue, a figure almost 50% higher than the $19 million it earned in the same period of 2023. On a gloomier note, its headline net loss deepened by 55% to almost $8.8 million. That net loss was $0.02 on a per-share basis.
On average, analysts following Cronos were anticipating the marijuana company's revenue would be slightly more than $26 million. Those pundits expected breakeven on the bottom line, however.
In its earnings release, Cronos attributed the considerable top-line improvement to more robust sales of cannabis flower and extract in its home market of Canada. It also said its international sales, to countries such as Germany and Israel, were higher.
Across-the-board expense cuts planned
Cronos proffered rather unusual guidance for the entirety of 2024. It reiterated its goal of cutting $5 million to $10 million in annual expenses, which it hopes will come from reductions in general and administrative, sales/marketing, and research and development expenses. It added that "The organizational and cost savings initiatives are intended to position the Company to drive profitable and sustainable growth over time."
Cronos did not furnish either revenue or profitability guidance for the year.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Cronos Group. The Motley Fool has a disclosure policy.
Why Investors Were High on Cronos Group Today was originally published by The Motley Fool