Cresco Labs (CRLBF) is all set to report its second-quarter results after the market closes today. Cresco stock tanked 6.9% yesterday. It gained a lot of attention this month after receiving regulatory approval for its New York marijuana license deal. It’s up 10.8% this month. Read Cresco Labs Lands New York Deal before Earnings to know more.
Analysts’ estimates for Cresco’s second quarter
Analysts have reduced their revenue estimate for Cresco Labs. They now expect its revenue to come in at around $27.9 billion, down from $28.8 billion. Analysts also expect Cresco to report EPS of -$0.01 in the quarter. To learn about how Cresco performed in its first quarter, read What to Expect from Cresco Labs’ Q2 Results.
Other news for Cresco ahead of its earnings
Just last week, the company also listed its shares on the Frankfurt Stock Exchange. The company feels that doing so could help it gain investments from European institutional and retail investors. A TipRank article on Yahoo Finance said Cresco stock gained momentum after it announced its bid to acquire Origin House. The company announced an update related to the acquisition in June.
The article also said that Origin House had cannabis distribution licenses in California. Therefore, Cresco will be able to sell its products to over 500 dispensaries in the state. Cresco could also face some challenges related to licensing in Illinois. Illinois will now allow only 55 medical marijuana providers to sell recreational marijuana. Read Cresco Labs Stock Tumbling ahead of Earnings to learn more.
Price coverage for Cresco
Prior to Cresco’s earnings release, only nine analysts are covering its stock. Three analysts recommend “strong buys” on the stock for the next 12 months. Around six analysts call it a “buy.” The target price for the stock is 19.4 Canadian dollars, which represents a 74% potential upside.
Cresco stock has gained 20.4% year-to-date. Since its inception in December 2018, it’s risen 70%. At 9:30 AM ET today, the stock was up 0.60%.
Canopy Growth’s (CGC) (WEED) weaker results pulled down the cannabis sector last week. Canopy suffered the most with huge losses of 14.5% last week. Cresco was up 18.6%. Other peers Aurora Cannabis (ACB), Cronos (CRON), CannTrust (CTST), and Aphria (APHA) also fell 8.4%, 9.3%, 33.7%, and 2.5%, respectively.
CGC has fallen 18.1% so far in August. Aurora, Cronos, and CannTrust have fallen 6.5%, 14.1%, and 14.04%. Conversely, Aphria has gained 15.9% in August.
Other news in the cannabis industry
Many presidential candidates are also bringing the sector into the limelight. They’re taking up marijuana legalization as a key issue for the 2020 presidential election. Read President Trump: Is Marijuana Legalization a Key Weapon? and Could President Trump Boost the Cannabis Industry? to learn more.
While these factors are affecting the cannabis sector’s performance, we think it’s one sector that’s recession-proof.
With so much positive news for Cresco, will a disappointing earnings report affect its stock price? Stay tuned to learn about its second-quarter earnings results today.