Cronos Group (CRON) Stock: Gains After Swinging To Profit

Cronos Group Inc (NASDAQ: CRON) is having a relatively strong start to the trading session this morning, and for good reason. The company announced its financial results for the first quarter, showing a small profit. Today, we’ll talk about:

  • The financial results;
  • what we’re seeing from CRON stock as a result; and
  • what we’ll be watching for ahead.

CRON Announces Financial Results

As mentioned above, Cronos Group is having a great day in the market today after announcing its financial results for the first quarter. Of course, the results were positive. Here’s what we saw:

  • Net Income – During the first quarter, CRON said that it generated net income in the amount of C$427,812 ($317,380). That works out to $0.48 per share. This figure grew substantially from the loss of $0.01 per share year over year.
  • Revenue – Revenue also proved to be positive, rising to C$6.47 million. On year ago, revenue came in at C$2.945 million.

Both of these figures proved to beat expectations. During the quarter, analysts expected that the company would generate $0.03 per share on revenue of C$6.390 million.

During the quarter, the company said that it sold 1,111 kg of cannabis, up from 501 kg one year ago. Revenue per gram climbed year over year from C$5.67 to C$5.73.

In a statement, Mike Gorenstein, CEO at CRON, had the following to offer:

In the first quarter of 2019, the business performed in line with our expectations. We continue to stay laser-focused on our strategy of building our supply chain, distribution, intellectual property and brand portfolios.

We’re delighted to have officially closed our transaction with Altria and to kick off a relationship we expect to lead to significant growth and value creation. Altria’s investment and the services that Altria will provide to Cronos Group will enhance our financial resources and allow us to expand our product development and commercialization capabilities. Altria’s skills in these areas as well as its regulatory expertise position Cronos Group to compete, scale and lead the rapidly growing global cannabis industry as markets open and welcome legalization.

Additionally, the launch of Cronos Device Labs announced earlier this week is an exciting next step on our journey to become a leader in cannabinoid innovation. Vaporizers have become one of the most popular forms of cannabis consumption, and we see a clear opportunity for Cronos Group to bring the next-generation of vaporizer products designed specifically for cannabinoids.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Cronos Group, the news proved to be positive.

After all, the comapny is seeing strong growth in sales, revenue per gram, overall revenue and it has finally swung into profits. So, it’s not surprising to see that excited investors are pushing the stock up in the market this morning.

As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:21), CRON is trading at $15.95 per share after a gain of $0.49 per share or 3.17% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on CRON. In particular, we’re interested in the company’s continued work to increase revenue per gram, global sales, and value for investors. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!

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