Canadian cannabis producer and distributor Cronos Group (CRON - Get Report) on Thursday reported second-quarter earnings that exceeded analysts' forecasts amid ongoing demand for its marijuana-infused products in Canada and globally.
Cronos said it earned $250 million, or 22 cents a share, vs. $723,000, or breakeven per share, in the comparable year-ago quarter. Analysts polled by FactSet had been expecting a loss of 2 cents a share.
Revenue came in at $10.3 million, above the $3.4 million it posted a year ago and almost double consensus forecasts of $5.5 million.
Cronos Group Inc. Announces Second Quarter and First-Half 2019 Results https://t.co/abUfPzFlbq— Cronos Group (@cronosgroup) August 8, 2019
"As we look ahead, we will continue to capitalize on this momentum by building on our partnerships with Altria and Gingko Bioworks and leveraging our collective resources and expertise to realize the significant potential in the growing cannabis industry," CEO Mike Gorenstein said in a statement.
Shares of Cronos have been on the rise of late, in particular following its announced purchase of Redwood Holdings earlier this month for $300 million as it looks to establish a new growth opportunity in the U.S.
Redwood makes CBD-infused skincare products and sells them both online and through retail and hospitality channels in the U.S. under the brand Lord Jones.
Shares of Cronos were up 8.8% at $15.70 in premarket trading on the Nasdaq Stock Market. They pared gains at the open, rising 2.81% to $14.84 in regular Thursday trading.