It's a new week, and CRON stock is still falling. Last week, the Cronos Group Q1 report came out, and despite the company posting improved revenue and net loss for the quarter, CRON stock tumbled on the news. And days later, it still is.
CRON Stock Falling, Falling, Falling
On May 9, 2019, Cronos Group (TSX:CRON) (NASDAQ:CRON), a global cannabinoid company with production and distribution across five continents, posted its financial report for the fiscal first quarter. Looking at CRON stock today, May 13, one might think the results were poor.
They weren't.
Cronos Group, a Toronto-area cannabis company, reported net revenue of $6.5 million in the first quarter, which means the company saw a 15% increase from $2.9 million in 2018. According to the company, we can attribute this to an uptick in sales of dry flower and CBD oil. Net income and EPS for the quarter also improved: $427,812 CAD and EPS of $0.48.
“In the first quarter of 2019, the business performed in line with our expectations," said Mike Gorenstein, CEO of Cronos Group. And while the results may have been in line with the company's expectations, they fell short of analysts'. We could assume this not meeting of expectations has something to do with why CRON stock fell on the news and has continued to do so days later.
Even though Cronos saw an increase with revenues hitting $6.5 million, this figure is still lower than what analysts were forecasting. Many, according to The Motley Fool, expected CRON to report net revenue of $7 million.
After the Cronos Group Q1 report highlighted figures such as its first-quarter net revenue, CRON stock dropped. At one point in the trading day, CRON stock was trading at $14.06, putting it down 9%. The cannabis stock is in a similar category today.
According to Yahoo Finance, at the time of writing, CRON stock is trading at $14.19 on the Nasdaq, which puts it down 7.86%.
Takeaway
What do you think about the Cronos Group Q1 report, and CRON stock tumbling because of it? Do you think the cannabis stock is in trouble?
Let us know what you think in the comments below!
Featured image: Canva
