Revenue came in under expectations, while there was a large asterisk next to the net profit line item. Cronos Group (NASDAQ:CRON) traded lower on Friday in the wake of the Q1 of fiscal 2020 results it published early in the day. For the quarter, the company posted revenue of $8.43 million, which was 15% higher…
Cronos Group( NASDAQ: CRON) traded lower on Friday in the wake of the Q1 of financial 2020 results it published early in the day.
For the quarter, the business posted profits of $8.
Image source: Getty Images.
Usually, analysts estimated Cronos would make $108 million on the top line and publish a per-share net earnings of just $0.07
As in previous quarters, however, the company’s bottom line was influenced by a big modification– particularly, the revaluation of derivative liabilities. This pertains to the worth of warrants that Cronos’ tactical financier Altria holds in the company, and is basically an accounting change.
Without Q1’s $113 million revaluation, Cronos would have been well in the red on the bottom line. Maybe a more revealing line item in this respect was the business’s operating loss, which can be found in at just over $45 million for the quarter. That was narrower than the almost $64 million deficit of Q4 2019 but deeper than the $101 million published in last-year’s Q1.
The cannabis company said its profits got a boost from the rollout of brand-new items, such as vaporizers for the leisure marijuana market in its native Canada. South of that border, Cronos indicated out a brand-new cannabidiol (CBD)- infused moisturizer sold under its U.S. CBD brand name, Lord Jones.
Cronos stock fell by 3%Friday on a day when the major stock exchange indexes all published gains.
Eric Volkman has no
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