Cronos Group (NASDAQ:CRON) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Cronos Group (NASDAQ:CRON) announced its quarterly earnings results on Thursday. The company reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.03 by $0.01, Zacks reports. Cronos Group had a return on equity of 4.85% and a net margin of 39.08%.

Here are the key takeaways from Cronos Group’s conference call:

• Cronos reported record Q3 net revenue, gross profit, and Adjusted EBITDA: revenue rose 75% year over year to $63.5 million, while Adjusted EBITDA reached $17.1 million.
• Canadian brands grew retail sales 41% year over year, versus 1% industry growth, with Spinach gaining share across vapes, flower, and pre-rolls; SOURZ remained the leading edible brand.
• Israel delivered its 11th consecutive quarter of record revenue, up 33%, and revenue in international markets outside Israel increased sevenfold to $13.2 million, led by Germany. Management cautioned that export timing can make international sales uneven from quarter to quarter.
• Cronos completed its CanAdelaar acquisition in the Netherlands, seeing long-term potential in introducing branded products and improving operations. Management expects price compression as supply ramps up and said expansion of the regulated experiment is possible but not something it is relying on.
• The company ended the quarter with $841 million in cash, restricted cash, investments, and deposits, up $14 million from Q2. Management noted possible Q4 softness in Canadian provincial-board purchases and said margins can vary by quarter.

Cronos Group Stock Up 5.7%

NASDAQ CRON traded up $0.20 during trading hours on Thursday, reaching $3.71. 3,962,486 shares of the company were exchanged, compared to its average volume of 899,354. The stock has a market capitalization of $1.36 billion, a P/E ratio of 31.91 and a beta of 0.96. Cronos Group has a 1 year low of $2.28 and a 1 year high of $3.91. The business’s 50 day simple moving average is $3.30 and its 200-day simple moving average is $2.87.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. Weiss Ratings upgraded Cronos Group from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. TD Securities reiterated a “buy” rating on shares of Cronos Group in a research note on Monday, September 28th. Zacks Research upgraded shares of Cronos Group from a “hold” rating to a “strong-buy” rating in a research note on Thursday, October 22nd. Finally, Wall Street Zen downgraded shares of Cronos Group from a “buy” rating to a “hold” rating in a report on Saturday, August 15th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus target price of $2.30.

About Cronos Group

Cronos Group Inc is a Canadian cannabinoid company focused on developing, producing and commercializing cannabis and cannabis-derived consumer products. The company serves adult-use and medical cannabis markets through a portfolio of brands and sells products such as dried flower, pre-rolls, vaporizers, edibles, oils and other cannabis formats, subject to applicable regulations.

Its brand portfolio has included Spinach, which is positioned primarily in the adult-use cannabis market, as well as Lord Jones and PEACE NATURALS.