Cronos Group Inc. (NASDAQ: CRON) has confirmed the release date for its Q3 2021 earnings to be Thursday, November 25, 2021, before markets open.
What to look for
The company recently announced a delay in the filing of its Q3 2021 earnings reports stating that the audit committee wanted some time to establish how much to devalue its VBD business. Cronos indicated that it needed time to determine the size of the impairment charge it should take on the CBD business, but it is likely to take $220 million on its intangible assets and goodwill. The company could incur another impairment charge for the third quarter, but that will not impact revenues or cash and cash equivalents.
Earnings: Stockearning’s Estimated EPS for the third quarter under review is expected to be a loss of $0.09 per share, representing a YoY drop in earnings of 125%. The full estimates indicate that the company will report earnings of $0.5 per share. In the second quarter, the company topped earnings estimates and posted EPS of $0.15. Historical EPS performance shows that the company has topped estimates five times (41%) and missed seven times (58%).
Revenue: CRON expects revenue of $18.43 million, representing a YoY increase of 62.2%. In the second quarter, the company had revenue of $15.6 million, missing consensus estimates of $18.48 million.
Stock movement: Since the last earnings release, Deere stock has lost 33.5%. Deere stock has been DOWN 12 times out of the past 15 quarters after the earnings release. So, the historical price reaction suggests an 80% probability of the share price going DOWN once Deere releases Q3 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 5%, while the predicted move on the seventh day is 11%.
What analysts are saying
BofA analyst Lisa Lewandowski lowered her price target on the stock from $6.5 to $5 per share but maintained her "Sell" rating on CRON. Lewandowski indicated in a research note that the company standard out among competitors with its strong cash position of $1.1 billion, heft science/innovation investments, and the partnership with Altria. The analyst appreciates the long-term prospects of the cannabis sect with Federal legalization, but she reiterated the "Sell" rating in the stock because of lack of scale, uncertainty around the release of Q3 results, and issues in the company's US CBD business.
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