Why Marijuana Stock Cresco Labs Jumped Today
One of the leading U.S. marijuana companies, multistate operator (MSO) Cresco Labs (OTC: CRLBF), posted its latest set of quarterly earnings on Wednesday. Somewhat uncharacteristically, investors greeted this with enthusiasm, hardly a typical reaction to such events in the struggling weed sector. As a result, Cresco's share price closed the day almost 5% higher, a far better performance than the 0.8% slump of the S 500 index.
In its second quarter, Cresco booked revenue of $198 million. This was up on a sequential basis, if only marginally (by 2%), and down by 9% on a year-over-year comparison. The net loss landed just shy of $43.5 million compared to the cannabis company's first-quarter deficit of nearly $28 million (roughly $0.15 per share) and the $8.3 million loss in the year-ago period.
Although analysts were collectively modeling a far narrower net loss of $0.04 per share for Cresco, the company beat on the top line. The average revenue estimate from those prognosticators was just under $195 million.
Source Fool.com
