Cronos stock soars 8% after Canadian cannabis company beats with earnings

Canadian cannabis company Cronos Group Inc.‘s shares rose 8% in premarket trade Thursday, after the company posted stronger-than-expected earnings for the second quarter. The company said it had comprehensive income of C$251 million ($189 million), or 22 cents a share, in the quarter, up from C$762,000, or breakeven, in the year-earlier period. Income was boosted by a C$264 million gain on the revaluation of derivative liabilities, which was offset by a C$991,000 loss on equity investments. Net revenue came to C$10.2 million, up from $3.4 million. The FactSet consensus was for a loss per share of 3 cents and revenue of C$7.3 million. Cronos said it sold 1,584 kg of product in the quarter, up from 477 kg a year ago. The average cost of sales before fair value adjustments per gram sold was C$3.01, up 14% from C$2.63 in the second quarter of 2018. Cannabis oil sales accounted for 20% of net product revenue, up from 19% a year ago. Shares have gained 39% in 2019, while the ETFMG Alternative Harvest ETF has gained 14% and the S&P 500 has gained 15%.

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