Cronos Group stock drops as revenue misses analyst estimate

Cronos Group Inc.
CRON,
-8.12%
CRON,
-9.16%
shares dropped 3.6% in premarket trades on Monday after the Canadian cannabis company’s third-quarter revenue fell short of analyst estimates. Cronos Group said it lost $36.89 million in the three months ended Sept. 30. In the year-ago period, it reported net income of $77.67 million. The company did not provide figures for loss per share or earnings per share. Revenue rose 3% to $20.92 million. On a constant currency basis, consolidated net revenue increased 7% to $21.8 million. Wall Street analysts expected revenue of $24.9 million for Cronos, according to a survey by FactSet. Cronos said its third-quarter loss mostly reflects fluctuation in the non-cash gain on revaluation of derivative liabilities. Cronos said it remains on track to save $20 million to $25 million in operating expenses for the year and that it’s seeking additional opportunities in 2023. Among the highlights in the quarter, the company’s Spinach blue-raspberry watermelon was the No. 1 edible in Canada and its Israel revenue rose 98% to $7.4 million on a constant currency basis.