Business Corpus: Cronos Group Reports Wider Loss, Revenue MissThe Cronos earnings report was weaker than expected, with a wider loss and revenue not strong enough. Cronos shares fell. Other marijuana stocks were mixed. The post Cronos Group Reports Wider Loss, Revenue Miss appeared first on Investor's Business Daily.

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Canadian cannabis producer Cronos Group (CRON) on Thursday reported first-quarter earnings. Cronos Group stock fell modestly in morning trading, while other marijuana stocks edged lower.

Cronos Earnings

Estimates: Wall Street expected Cronos Group's per-share losses to deepen to three cents. The Street saw sales jumping 150% to $5 million.

Results: Cronos Group reported a GAAP loss of 48 cents Canadian (36 cents). Revenue climbed 120% to $6.5 million Canadian ($4.83 million)

Cronos Stock

Cronos stock fell 2.4% to 15.09 in the stock market today. The stock has a Composite Rating of 46 out of a best-possible 99, according to Marketsmith. But its EPS Rating, a measure of a company's ability to grow profits, is far worse. That rating stands at 5.

Cronos stock marched higher after the company announced that it landed a $1.8 billion investment deal with tobacco company Altria (MO). But shares skidded lower since February, as the pot producer's stock price became more untethered from its actual financials. Cronos' sales have trailed those of rivals Canopy Growth (CGC) and Aurora Cannabis (ACB).

Prior Quarter Results

When Cronos reported fourth quarter results in March, sales came up short of expectations. The company at that time did not break out recreational sales, as others have.

Shrinking inventories, constrained capacity and hangups related to packaging and processing raised concerns among some analysts' about the company's ability to get product out the door and push sales higher.

Since legal recreational sales started in Canada, the marijuana business there has been hurt by product shortages, packaging regulations and licensing backlogs. Much of the cannabis industry is losing money as it tries to stay compliant and open up more grow spaces. Legal cannabis retail sales in Canada fell, on the month-to-month basis, in January and February, according to government data. Marijuana stocks over that time have faced a bumpy ride.

Analysts also have mixed views on whether Cronos' partnership with Gingko Bioworks to more efficiently produce cannabinoids — the individual compounds like THC, CBD and others in cannabis plants — is enough to set the company apart from rivals.

Cronos Group on Tuesday said it opened a research and development facility in Israel.

Other Marijuana Stocks

Among other marijuana stocks, Canopy Growth stock dipped 1% on Thursday. The stock briefly cleared a consolidation with a 51.91 entry, but shares have pulled back enough to invalidate that buy point.

Aurora Cannabis stock fell 1.5%. Aurora has been struggling to find support at its 50-day line. Early Thursday, Aurora Cannabis said it extended its exclusive supply deal with Luxembourg. The company reports earnings after the close on Tuesday, with the post-results conference call the next morning.

Tilray (TLRY), which also reports Tuesday, was down 1%. CannTrust (CTST) retreated 2.5%. CannTrust reports Tuesday as well.

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The post Cronos Group Reports Wider Loss, Revenue Miss appeared first on Investor's Business Daily.