Cresco stock is trading in the red on Thursday. Leading multi-state cannabis cultivator and producer Cresco Labs (CSE:CL) (OTCQX:CRLBF) reported its earnings for Q1 2019 and the company’s investors might not have been particularly happy about the numbers that were reported.
Revenue Grows 24% Quarter Over Quarter
The Chicago-based company, which is among the biggest vertically integrated multi-state cannabis company in the world, reported revenues that fell short of analysts’ expectations. Cresco Labs recorded revenue of $21.1 million. However, analysts were estimating the company to report $22.8 million, according to Refinitv.
Although the revenue fell short of analysts’ expectations, Cresco Labs still managed to generate growth. The revenue grew by a whopping 313% from the same quarter in 2018 and reflected a growth of 24% from the previous quarter.
“We believe we have built the most strategic geographic footprint of any cannabis company in the United States, and now with the acquisition of Origin House, we will have the distribution platform to enable us to take market share in the largest and most important markets in the cannabis industry,” CEO Charles Bachtell said.
CRLBF stock is trading lower by 5.40% and now selling at $11.10 on the OTC market. On the Canadian side, Cresco stock is down by 6.35% and trading at $15.
Adjusted EBITDA Falls
On the other hand, the net loss for the quarter was $7.6 million, and it is a particularly alarming development since, in the previous quarter, Cresco Labs had actually turned a net profit of $600,000.
The adjusted EBITDA came in at $800,000 for the quarter, down from the year-ago quarter of $1 million.
About Cresco Labs
The sheer scale of Cresco Labs’ operations makes it a company that is hard to ignore. It operates in seven states in the United States and has already managed to get a permit for doing business in Michigan.
Last month, the company also inked an agreement with cannabis brand distributor CannaRoyalty Corp, which will help Cresco to gain a larger footprint in the market.
Cresco stock has been one of the better-performing stocks in the cannabis industry this year. In the 12-month period, the stock has gained 97%, and in 2019 so far, Cresco Labs stock is up by as much as 70%.
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