Why Cronos Group Is Plummeting Today
Shares of marijuana producer Cronos Group (NASDAQ: CRON) are plunging 13% as of 10:42 a.m. ET on Tuesday after it reported earnings that beat Wall Street projections on bottom-line losses but missed analyst revenue estimates.
Cronos reported revenue of $23.1 million, a 48% increase from last year, but well below expectations of $28 million. Losses for the second quarter were $44.6 million, or $0.05 per share, dramatically better than the $165.5 million, or $0.48 per share, it lost in the year-ago period. It also beat analyst estimates for a loss of $0.06 per share.
Cronos sells marijuana in Canada, Australia, Germany, and Israel but has focused particularly on the latter in more recent periods as it continues to see strong growth in the market. Revenue from Israel more than tripled over the past year, reaching $7.2 million, or 31% of Cronos' total revenue.
Source Fool.com
