Cronos is soaring ahead of earnings
- Cannabis producer Cronos was up nearly 9% Monday - ahead of its fourth-quarter earnings release due out Tuesday morning.
- Wall Street analysts expect Cronos' revenue to have grown by more than 500% over the past year.
- Watch Cronos trade live.
Cronos was up almost 9% Monday, one day ahead of its fourth-quarter earnings report. The cannabis producer has been one of the strongest performers on the Nasdaq since listing in February 2018, having risen 181% over the past 12 months.
Expectations for the quarter are high, with analysts surveyed by Bloomberg forecasting revenue growth of more than 500% for the quarter to $10.8 million. The company's losses are expected to approach breakeven in the fourth quarter, with analysts seeing a profit of $0.33 per a share for fiscal 2019.
Cronos shares on Monday may also be getting a boost from the New Jersey state legislature. Both houses of the state legislature were scheduled to vote on a controversial bill that would legalize, regulate, and tax recreational marijuana. If passed, New Jersey Governor Phil Murphy has vowed to sign the bill into law.
Cronos Group has often been at the forefront of change within the quickly growing cannabis sector.
Altria Group, the maker of Marlboro cigarettes, invested $1.8 billion in Cronos group in December 2018, giving it a 45% stake in the cannabis producer. At current prices, Altria's investment in the company has more than doubled.
"Altria is the ideal partner for Cronos Group, providing the resources and expertise we need to meaningfully accelerate our strategic growth," said Cronos CEO Mike Gorenstein at the time of the investment.
Cronos became the first company that grows and sells marijuana to be listed on a US exchange in February 2018, paving the way for publicly traded rivals Canopy Growth and Aurora Cannabis. Cronos previously traded in Canada.
Founded in 2013, Cronos Group owns and operates brands in the business of marijuana cultivation and distribution. It owns 100% of both Peace Naturals and Original BC, which are licensed to grow and sell medical marijuana.
The stock is was 101% this year, including Monday's gain.
