Cannabis Watch: Cronos shares weigh on cannabis sector after soft earnings fail to impress

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Cronos Group Inc. shares fell Tuesday, after the company’s quarterly earnings failed to light a spark with investors, who were also awaiting a key congressional committee vote on a cannabis banking bill.

Cronos CRON, -1.41% posted a net loss of C$11.8 million ($8.8 million), or 6 cents a share, for the fourth quarter, after earnings of C$667,000, or a penny a share, in the year-earlier period. Revenue came to C$5.6 million, up from C$1.6 million. The two analysts that provided estimates to FactSet were expecting a loss of 1 cent and revenue of C$10.4 million.

Jefferies analyst Owen Bennett said the results were “significantly below expectations” and also lagged most of the company’s peers.

“This delivery has done nothing to suggest our caution on the name is misplaced and we continue to believe delivery over the next 12 months will disappoint and see de-ratings as likely,” Bennett wrote in a note to clients.

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