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What to Expect from Cronos Group’s Q4 Earnings

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Fourth-quarter earnings

Cronos Group (CRON) is scheduled to report its fourth-quarter and fiscal 2018 earnings on March 26 before the market opens. The company will hold an earnings call on the same day.

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Sales estimates

As of March 18, the analysts covering Cronos Group stock expect the sales to increase almost 4.5x. In the fourth quarter, the company is expected to report sales of 9 million Canadian dollars, which is almost 459% year-over-year growth from 1.61 million Canadian dollars in the fourth quarter of 2017. Sequentially, the company’s revenues are estimated to grow 139%. The growth will likely be fueled by the recreational cannabis segment.

Unlike Cronos Group’s peers (HMMJ) including Aphria (APHA), Canopy Growth (WEED), and Tilray (TLRY), the company has a partnership with a tobacco company. Altria (MO) has an ~45% stake in Cronos Group. The partnership gives Cronos Group capital to invest in capacity expansion and research and development.

Canopy Growth has similar backing from Constellation Brands. HEXO (HEXO) has a partnership with Molson Coors. The partnerships will likely benefit these cannabis companies compared to cannabis players without partnerships.

Next, we’ll discuss what to expect from Cronos Group’s profitability.

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