CRON Stock: How To Play Cronos Group Ahead of Earnings

CRON stock

CRON stock is expected to release its fiscal first-quarter earnings results before the market opens on May 9, 2019. In Monday’s session, Cronos Group Inc. (TSX:CRON) (NASDAQ:CRON) is trading lower by over 3%, now selling at $16.07.

Earnings: Key Catalyst

In the last two months, CRON stock has taken a beating, but the anticipated earnings are likely to drive CRON stock higher if the numbers are better than estimates. On the other hand, if Cronos Group misses on estimates, CRON stock will move even lower. The earning results will determine the sustainability of future earnings and the immediate price change.

Over the last 30 days, the consensus earnings per share for Q1 has remained unchanged, which is a reflection of how analysts have reassessed their earlier estimates over time. For investors, they should be aware that the direction of estimate revision by the analysts may not be reflected in the overall change.

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The Zacks Consensus Estimate is currently the most accurate estimate for Cronos Group, no other analyst reviews being done recently. CRON stock currently has a Zacks Rank of #5 and a 0% Earning ESP, which makes it hard to predict whether the company will beat its consensus EPS estimate.

Expected Earnings Estimates

Analysts expect Cronos to report a $7.1 million CAD growth in sales, which is a 140% increase from the $2.9 million CAD reported in the Q1 2018. The sales will include the recreational-use marijuana sales that were not there last year and it will be a 27% increase from Q4 2018.

Gross income is projected to be around $3.21 million CAD, up from the $1.9 million CAD that was reported in 2018. However, this will not translate to margins growth, which is expected to be around 46%, down from 65.5% in the Q1 2018. The company expects a 110.3% increase in revenue in the quarter from last year and CRON stock is likely to deposit a $0.03 loss per share, which is a -200% year-over-year change.

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